Hello there, this is Evelyn here. Today I’m here to talk to service business providers. One of the questions I get from service business owners is, “How do I make my financials? How do you use the data to make relevant information?” One of the things that specially comes to mind are, how profitable are my customers? How do I know which ones are making me money and which ones are not?
Well, this set of videos right here are here to talk about the things you need to know for your service business. Specifically, what you need to do to pull the right kind of data from the financial systems? With the right systems in place you can get information like profits per customer from your data, from the financial records. Actual labor versus estimated labor because you want to know if your employees are on track. You can get information about the relationship between marketing and sales growth. The trend of administration cost growth, overall profit growth, cost trends, and growth in assets, debt and equity.
You specially want to know the growth in assets and equity because as a business owner, part of why you’re in the business is to build assets. That’s the whole purpose, right? You want to build assets either because either you want to sell in the future, or you want an asset that can provide enough for retirement or you can past down to your children. And if your assets are not growing, if everything you have in your business, and when I say assets. I’m not really just tangible assets. If everything in your business is getting used up and your assets are not growing, then you don’t really have anything else but a job. But when your assets are growing, it could grow the intangible assets. Cost growth and other assets like cash and other assets that you can actually turn back into more profits in the future. So, that’s why you want to keep track of the growth in assets in a business.
So, this video, set of videos right here, are not really going to go specifically into how to pull these reports. But what I will show you is how to have the right system in place so you can have the right set of information from your financial systems.
So, in the next video we talk about planning and budgeting. Which is the very, very first step in getting the right data from your financial systems. Without a plan and budget, it’s really hard to get the right data into your financial system.
Planning and budgeting is a baseline for which you can begin to make decisions. Then once you have a plan and a budget, then you have to keep track of important data. So that’s what the third video is going to talk about. It’s going to talk about how to track that data so you can put the right information out from your financial system. And the last video will be talking about getting the right type of information from your financial system.
So, as you can see, I’m talking about a set of systems you can use to create, you can use and you can use that as a baseline for creating a set of systems so you can get the right data from your financial system, so you can make the right decisions. For example, are all your customers profitable? How do you know which customers need to firer and which ones you need to keep? Which ones you need to raise prices for, which ones you need to talk to. All that financial data provides a very, very important role in running your business.
I’ll see you in the next video. I look forward to it.