(PRWEB) September 15, 2016
Pittsburgh court reporter and manager of the firm Constance Lee & Company announces a commitment to monthly financial projections and shares how other business owners can benefit.
Lee notes that monthly financial projections can be challenging for a business owner to tackle, but they can also be instrumental for a company’s success. One recent study identified that up to 82 percent of small businesses and startup companies fail due to inadequate cash flow management. According to Lee, that’s just one of the reasons that she sets aside time each month for projections of income and expenses.
Lee says that eliminating debt is something that should always be on a business owner’s mind. Truly tackling outstanding debts cannot be accomplished unless the business owner has an accurate picture of the cash coming in and going out of the company on a regular basis.
Getting a clear picture of where the company is headed for the month can also provide the company owner with insight about potential red flags down the road, giving him or her time to adjust to these problems rather than feeling blindsided by them. This process is also essential for paying quarterly taxes, a habit Lee believes business owners need to get used to sooner rather than later. Being hit with a major tax bill can present significant financial difficulty for a business owner, but including it in the regular projection of expenses makes it much easier to handle. Getting behind on taxes one year makes it more challenging to ever catch up, putting the business owner in a constant state of anxiety and indebtedness.
One of the most common mistakes that new and even experienced business owners make is in staying stuck in the projection. If the company’s invoicing procedure, for example, doesn’t give clear terms to clients, then money expected to come in may not be there when it’s time for the business owner to pay employees or the bills, much less cut checks to pay outstanding debts.
Court reporting firms, like the one run by Lee in Pittsburgh, must have owners and managers implementing these business planning skills to achieve financial goals and remain debt free. Running a firm is a serious commitment, even for an experienced court reporter. The chances of business success and a peaceful mindset in the day-to-day management can only come when projections are made and reviewed regularly.