Most everyone has been there with their business, not having reconciled their bank accounts or credit cards, not sure where things stand with their payables and receivables, do their financials line up with their tax return, and the bank is asking for up-to-date financials to renew their loan. Where are theyu supposed to start without just trying to throw something together and not being able to defend it?
1. First you need to determine where you’re at with the bank and credit card statements, because if you old deposits or checks that have no cleared and it’s several months old, then you’re misstating your information and you need to get them cleared up.
2. Did you receive any type of information from your tax preparer to make sure financials line up with your tax return so when you’re asked for both pieces of information, they make sense to a loan officer?
3. Do you see alot of invoices that are supposed to be paid but they show they’re still open for some reason?
4. The same is said for your bills, because depending upon the report, you may be showing bills that have already been paid but they show up twice.
5. When was the last time you checked all of your automatic withdrawals? It’s rare that we don’t use automatic payments for our regular bills and subscriptions, but when was the last time they were looked at and you wondered if you really used that service anymore or that bill just kept adding fees you didn’t authorize?
A very dear friend always reminded me that the easiest say to tackle a project is one step at a time, so instead of feeling overwhelmed, tackle one thing at a time and just don’t hide it away hoping it’ll fix itself. Starting a business is easy – keeping it going is the hard part.