Tracking Your Bottom Line

So many articles and “experts” tell you to track things that are important to your business. How do you know what those things are? Sure, you should track your bank balance, but what else should you keep on top of?

One way to figure that out is focusing on things that keep your business going. Customers and money are important for a successful business. Meeting deadlines and expectations are important, too.

Tracking these four important things will help track your business’ bottom line:

1. Income

No surprise that you should record income in your books when you receive and deposit it. Recording income by source, like fees or product sales, shows you which activities are generating your income. For retail sales, tracking income by product type highlights your popular items.

2. Delivery

Meeting deadlines and expectations builds your brand and reputation. You might think that you’re meeting expectations, but you have to know. Track your deadlines or delivery times. Compare to your promises to your performance to see if you’re delivering as expected.

3. Customer Satisfaction

Repeat business indicates happy customers. Could they be happier? Ask them. Not only will you learn things you weren’t aware of, asking shows that you care. It creates goodwill and opens communication lines. Acting on customer feedback is even better.

4. Expenses

Tracking expenses is more than recording payments. Expenses should be categorized in enough detail to know where your money is going, like wages and equipment. Avoid using “other” or “miscellaneous” categories that don’t allow you to know where that money was spent.

Tracking what’s important to your business helps keep your business going….and growing.