At some point, most businesses require an in-depth look at their financial structure. An expansion project, low cash reserves or a jump in expenses can prompt you to conduct such an exercise.
One way to analyze your financial health and identify how it might be improved is by looking closely at your financial situation. Do You Know Yours?
Start by Assessing your Financial Situation.
Here’s how to do it, in 3 easy steps.
1. Gather your Documents
Taking stock of your existing finances is the first building block to sound financial management.
If you’re organized, it will be a simple matter to get hold of the documents (paper or electronic) showing the balance on your credit card, your mortgage and the value of your investments.
If you’re more the type to squirrel your financial papers away in different desk or dresser drawers, finding the amounts on those bonds inherited from your father might involve some excavation.
While you’re looking for your life insurance policy, you might come across other documents such as your vaccination records, passport, certificates of investment and household bills. Take the opportunity to organize them in clearly marked folders (health, identity, savings, taxes, etc.).
2. List your Assets and Liabilities
3. The Moment of Truth
The difference between your assets and liabilities reveals your net worth.
If your net worth is positive, you may wish to save or plan some future projects, or maybe even both!
On the other hand, if your net worth is negative, you are “in the red”. It’s time to get back on track—you’ll need to tackle your debts first.
Whether your net worth is positive or negative, the next step is to establish your monthly budget.
By listing all your income and expenses, you’ll know exactly where your money goes and how to control it. The 3 steps to drawing up a monthly budget can help you in this process.
If your budget shows a surplus, you’ll be able to save or invest, as you choose. Maybe you would like to invest in your RRSP, buy a house, try your luck on the stock market or go on sabbatical? Anything is possible for a person as disciplined as you are! Maybe the advice of a financial planner would be useful for you.
If your budget is in deficit, identify the expenses you could cut back on to balance it. The important thing is to go slowly and set realistic goals to pay off your debts.
Learn to Achieve a more sound Financial Situation with the Action Plan – 5 steps to organizing your finances.
Outsourcing has endless possibilities—you just need to know how to use it.
We used this product to help with outsourcing some of our business. You can too!
You can Outsource:
Website development, mobile app development, logo design, market research, customer feedback, email marketing, sales, promotion, scheduling, editing, proofreading, ghostwriting, interviewing, application testing, bookkeeping, employee vetting, so much more—these are just SOME of the things you can outsource today!
For more Entrepreneurial ideas, business development tips and tools Check out our Tips and Tool page. https://EasyOnlineBizSolutions.com/tips-tools
Nicky and Dave