Every business manager will spent a great deal of time every day dealing with business problems. Things don’t always go according to plan or turn out the way they are supposed to. Knowing you have a real problem to solve can only happen if you know what you should be watching. You cannot grow a good business without managers who are great problem solvers.

You have to have well thought through financial controls to run a good business. A good set of financial controls will sound the alarm and get the managers attention when financial problems begin to happen in the business. Good financial reports, the type you can produce from small business accounting software is a key element in implementing good financial controls. small business accounting software should be able to report cash flow from profit period by period and compare it with the budgeted amounts. Start with a simple set of the critical operating ratios and balances and make sure your reports can highlight these.

It is essential you consistently track margins and immediately scrutinise and address any differences regardless how small. Any change regardless of how minor in the margins or volumes of product sales should be closely scrutinised, understood and addressed as a substantial drop in profits will inevitably follow. You must monitor fixed expenses closely especially at the outset of the financial year and always make sure they are in line with your plan. Good small business accounting software should let you easily create debtors reports (people who owe you money) and the results in these reports should be monitored closely.

Experience is the way to learn and over time you will learn which financial controls should be highlighted in your accounting reports, just make sure you have the right small business accounting software that can generate these.