IT support companies are (unsurprisingly) run, in the main, by technical professionals. So if you run an IT business, it will be no surprise if financial management isn’t your strongest suit.
However, regardless of your level of bookkeeping proficiency, there are five figures you should always know off the top of your head. This articles tells you what they are:
What is your current business bank account balance? You should always know how much money is in the bank. If not, how do you know what equipment you can commit to buying? How do you know you can cover your expenses? Make it your business to check your balance daily.
How much your firm is owed? A lot of the time, IT support companies have much of their cash flow tied up in money owed. It’s essential you know what your clients owe you. It should be easy to find out this information by running an “aged debtors” report on your financial software.
How many customers have overdue invoices? It’s essential to be aware of how many customers have overdue invoices, and who those customers are. If a client suddenly begins to delay payment, it could mean they are unhappy with your service, or are having financial problems. A customer’s cash flow problems can soon become YOUR cash flow problems, so always keep credit control in your mind.
How much does your company owe? Together with your bank balance and the amount owed to your business, this figure gives you the overall picture of the financial health of your company.
What is your monthly target? IT support companies should always have something to aim for, so you should always have a target in mind. Don’t ever simply “see what happens.” Instead, have a challenging target and work to exceed it. This will encourage you and your staff to cross-sell and up-sell and continue furthering the success of your company.
So, to owners of all the IT support companies reading this post, could you honestly say you know all of these numbers? Let us know in the Comments box below.
And to follow-through on the tips introduced in this short article, be sure to download your free copy of the special report on How to Start a Computer Consulting Business: 6 Proven Ways to Build Your Initial Client Base.
Creative Commons Image Source: flickr SalFalko
Topics:- Managed Service Provider MSP