Finish Quarter 2 Strong by Re-accessing Your Budget

As we are heading towards the end of Quarter 2, there is no better time to revisit your business budget. We are halfway through the year, which means you have a half year of data to analyze and adjust your budget where necessary.

Do you have a business budget? A business budget is typically set up following a review of your essential reports. These reports include:

• Profit and Loss Statement • Balance Sheet or Statement of Financial Position • Statement of Cash Flows • Statement of Retained Earnings

The Profit & Loss Statement helps a company determine how much liquid cash they have. This statement allows you to determine whether the company is profitable based on accounts payable and receivable.

The Balance Sheet or Statement of Financial Position helps the company understand what capital is needed based on the company's liabilities, assets, and stakeholder's equity.

The Statement of Cash Flows analyzes where cash is coming in from and leaving out to. This statement analyzes the activity on the balance sheet and income statements to make decisions about operating, investing, and other financial activities.

The Statement of Retained Earnings reconciles changes in the retained earnings account for a reporting period. The statement begins with the beginning balance in the retained earnings account. It then subtracts such items as profits and dividend payments to arrive at the ending retained earnings balance.

If your eyes are starting to glaze over, we do not blame you but know that with the right tools and help, this seemingly complicated process can be simplified. You could hire an accountant. Touché Financial Solutions has a variety of services and customizable service packages to fit entrepreneurs at every level. We understand that building a business is a journey, and we are here to help along the way. View our service packages. While on our website, you can also schedule a Discovery Call.

If you believe your business does not need the maintenance of an accountant just yet, we know how powerful QuickBooks is as a financial management tool, which is why we offer training for clients and non-clients to get you started! Follow the link here to learn more about QuickBooks or set up a Quickbooks training.

If you are reading this article, it is because you are doing a great job learning more about managing your business. You can do this. We are here to help.