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Insightly: Know Your Numbers and Plan for Success

Small Business: Know Your Numbers and Plan for Success

Every small business owner has major strengths: An intense passion for your product. A winning sales demeanor. A head for numbers.


Too often, business owners will leave their finances in the hands of their trusted accountants, but it’s important that you are on top of how your income and expenses are playing out so that you can set realistic goals and plan to grow your business.


Know Your Spending and Plan for Future Expenses

Storing receipts in a folder until the end of the year or using an old-fashioned ledger doesn’t cut it these days. Keep track of expenses in business accounting software like Wave, QuickBooks Online, or FreshBooks to help you analyze costs and plan for the future. Accounting software also allows you to categorize and visualize these numbers in different ways – seeing a trend graph of changing month-to-month expenses can guide you in predicting the impact of future business expenses.


Set Income Goals and Project Your Future Cash Flow 

In order to cover expenses, you’ll need to ensure a consistent cash flow. Deciding on income goals is only part of the equation – you will need a plan to achieve them. Look at your numbers for the last few years and relate them to your business experiences. This will give you an idea where you’re headed and what has worked in the past.


By entering prospective sales into Insightly CRM as opportunities, you can use filters and reporting tools to see the value of deals that are coming down the sales pipeline. Using our integration with QuickBooks Online, you can bring up a contact’s record and see the status of their invoices. With this information, you can monitor payments and invoices to ensure you’re getting paid in a timely manner. No one can predict the future, but having the numbers at hand will better help you prepare for it.


Work With Your Accountant to Understand the Basics

 Discuss unclear financial terms or processes with your accountant to get a better understanding of how these pieces fit together. Ask them about software they have used and research applications like Insightly and QuickBooks Online, which can help you collaborate and keep each other informed.


Whether you are running a bed and breakfast, selling hand-crafted goods online, or reselling widgets for the nearby auto parts supplier, having more financial knowledge and the right tools will make it easier to manage your business and avoid stressful surprises.