B.A.S.I.C. STEPS TO FINANCIAL FREEDOM
At Lifestyle CPA, we use our proprietary B.A.S.I.C system to help you achieve your goals. Our goal is to help you build a solid business; that is a collection of systems which will generate revenue independent of the owner. Our basic system can take you from hap-hazard to financially successful.
B. Business Plan
A business plan is a strategic map that shows you how to reach your end goals. In order to develop a good concept or idea into a reality you need to have a plan with milestones. These milestones are also known as intermediate goals, or the goals between the conception and end result. There are 5 questions you need to ask yourself before you start developing your plan:
- Where are you going?
- What is required to get there?
- What are you willing to do to get there?
- What do you have right now that could help you get there?
- What gaps need to be filled to get there?
Defining your goals will help you set a clear path. Your choices today will become your destination for tomorrow. One of the most important things you can do before you start any business venture is to define what is important to you. As you become successful opportunities are going to come your way which might conflict with the goals you initially set for yourself.
LifestyleCPA can help you start building your plan today!
A. A Budget
Once you have your business plan, the next step is to design a budget to help you stay in line with your strategic goals. A budget is you telling your business where it is going; rather than your business telling you where it is going. You must compare actual expenses to the budgeted expenses. Investigate every significant deviation. If you do not, a budget becomes worthless.
When making a budget the three major concerns are:
- Maximizing revenue.
- Full recovery of cash investments.
- Absorbing both current and future cost increases.
Before the budgeting process is started, you need to understand your sources of capital, income, and costs. Making good business decisions requires proper classification of costs, assets, and expenses. This is unmeasurably important.
The steps described above are not a onetime effort. The status quo must be frequently challenged. Key ratios might change due to external or internal factors.
S. Solid Bookkeeping
One system that needs to be continuously monitored and improved is one that most business owners hardly think about; the system of recording financial information. Recording financial events allows you to generate financial reports.
To manage your revenues, costs, and assets, you must invest in a good accounting information system. Knowing your business starts with having good records.
Your data collection system must be optimized to capture relevant data. If your system is not optimized to capture relevant data, the reports you generate will also be irrelevant. If your data collection process is faulty, then every other effort in your business will be faulty. As simple as book or record keeping may sound, it is a very vital function in your business that affects everything else you do.
Take a look at how we use Quickbooks to help you keep your data streamlined. Contact us today to see what we can do for your bookkeeping systems!
Receive the reports you need, when you need them. There’s no point in having great information if you can’t retrieve it when you need it. With B.A.S.I.C. in place, you’ll have quick access to the information you need without having to ask twice.
Join LifestyleCPA today and receive the reports you need when you need them!
Everyone who runs a business knows that both federal and state agencies require regular reporting. See our tax page to see how we can help you stay compliant.
The Next Step
Time and not money are the most precious resources you have. Time once spent can never be repossessed. On the other hand, money spent can always be regained. If you use your time in a way that you never invest in your future, then you cannot expect something different in return. Being too busy in your business to profit from it in the long run makes no sense. Once time passes, you cannot go back and get the gains from all the investments you did not make.
Hire us to make the most of your valuable time!