Articles

Business Tips From the Editor - May 2025

BUSINESS TIPS FROM THE EDITOR

May 2025

Richard T. Hendee, Editor
The Silver Fox Advisor

“The Need for Good Monthly Financial Statements”

Financial Statements are the scorecard of any business operation. A business that does not have good financial statements is like playing a round of golf just for the fun of it, or two baseball teams playing a game and not knowing which team won or what any of the players' individual stats were. That may be o.k. if that is what you want to do, just have fun, but in the business world, playing the game is only part of operating a business. Having good financial statements lets the business owner know how much the business is selling, how much it is generating from those sales, and what it costs to operate the business, and ultimately provides the owner with a return on his or her investment and, oh yes, a livable income.

I have seen too many small businesses where financial statements have not been produced for several months. Or, if they are produced, the owner can not depend on the reliability of the numbers showing on the statements. But yet, the business owner lives with the situation because the internal bookkeeper has been with the business since it started, or is a relative of the business owner, so the lack of good financial statements gets accepted. Then one day a situation occurs that causes the business and everyone involved much pain, stress, and anxiety.

Typically, these situations simply do not get better with time, they only get worse. What results is a long, expensive and messy clean-up that could have been avoided if the situation were addressed earlier.

Generally speaking, most people know when they are in over their heads but are reluctant to speak up for fear of losing their job or disappointing someone they respect or love. What I have seen when these situations are addressed in a business-like and professional manner, usually the result is everyone experiences a sense of relief.

If you need help with making changes in your business, I would recommend you seek an experienced business advisor, coach, consultant or mentor with a financial or business background for your Company: Contact a Silver Fox Advisor. Remember, having experience on your side always helps.

We encourage you to visit our Website at www.silverfox.org or www.silverfoxadvisors.com to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors and their businesses, as well as our great programs and community outreach endeavors.