Why Financials Are Important to Your Business

By Jimi Coplen, DCOH Executive Director

If you love what you do, but dislike the accounting side, keeping up with receipts, and doing the overall financials, take comfort in knowing you are not alone.  The least favorite part of many business owners’ jobs is the financials.

Businessman drawing Financial Growth concept on blurred abstract background
Financials are important to all businesses, regardless of how big or how small. 

Even if you pay an accountant so you don’t have to worry with the numbers, it is important to understand them. It is crucial that you know how to read a financial statement, balance sheet, and profit and loss statement. It is also important to do a budget for your business and keep up with it throughout the year. Otherwise, how do you know the health of the business?

These documents are the road map to your business’ success. And, if you are in the market to purchase a business, it is important that a business owner be able to show you these documents. This will tell you if there is a market for the type of business you want to go into, if the business was profitable, what the costs of goods and services were for that business. You can’t get a good picture of the business climate without these documents.

QuickBooks is a standard accounting system used by most businesses. If it is set up correctly, it will run all important documents with the push of a button. You can write checks, reconcile bank statements, and send invoices with this software. If you have QuickBooks, but aren’t sure how to do these things, check with an accountant or come by the DCOH office. Also the Small Business Development Center in Abilene hosts classes from time to time on using this software.

The DCOH board and your local bank will require these documents if you wish to seek financial assistance for your business. These are important documents that no one in business should be without. They help you review your current situation and make plans for the future.

A great place to start your business plan process is at the www.score.org website. This website has a variety of templates for any business. You can also set up an appointment with the Small Business Development Center in Abilene for a thorough business plan. The DCOH staff is also here to help you work through these documents. For more information, give us a call at 940-864-3424 or visit our website at www.haskelltexasusa.com/edc.