Has your business pivoted over the past six months? And if so, have you updated your reporting and accounting to reflect the changes?
Many businesses have had to make significant shifts over the past six months. And in the chaos, we are finding that many entrepreneurs have not taken the time to update their reporting systems. This hole is not a surprise, as reporting and accounting often slip in the list of priorities in high-pressure situations.
However, a lack of proper reporting can haunt you later. In many instances, when we are helping entrepreneurs prepare forecasts for loan applications these days, it is challenging because we don't have accurate information to reflect upon what's been happening to their businesses over the past six months. This makes it more difficult to predict the future and understand what is going on today.
Can you imagine going to an NBA basketball game and watching players running around the court with their shoelaces untied? How nervous would that make you feel? That’s exactly how I think about an entrepreneur running a business without accurate books and reporting.
If you haven’t taken the time to check in on your reporting systems lately, now is the time to do it. Run a year -to-date comparison, and see if it makes sense. If you have a dash-boarding system, have their been changes that need to be updated? Take the time now to work on these critical issues.
On a personal note, I need to take the time and follow my advice for MultiFunding. I feel like the shoemaker's son with holes in the soles of my shoes. Updating our reporting is high on our priority list.