Shane Rau has been serving Nexstar Network members since 2013. He enjoys working with contractors to implement the processes and procedures necessary to produce timely and accurate financial statements. He helps business leaders understand and review their company's financial information so they can make sound decisions.
When it comes to the financial health of a company, there’s a lot of information to cover, which is why it's critical to form good financial habits to avoid becoming overwhelmed.
Balance sheets are the unsung heroes of our industry’s accounting management tools. Love ‘em or hate ‘em, they’re vital to your business, and learning to read them correctly will supply you with information that can keep your company out of financial trouble, as well as show you some important growth opportunities.
While most companies are doing the best they can when it comes to matching, every owner or business leader should make a concerted effort to educate themselves on the topic and begin to implement this best practice at their business.
A consistent message across all industries is that each month should be closed out by the 10th of the following. It allows for a company to review the prior month’s performance and make any necessary changes in the current period.
I work with a lot of companies, and sooner or later the topic of deferring revenue always comes up. Some companies do it, some don’t. Those that do tend to be happy with the process and accuracy of their numbers, though occasionally there will be a company that will be unhappy with the added work of deferring revenue.
Depreciation is one of, if not the largest, vehicle expense for a company. So, it’s very important to record this every month. You wouldn’t go a whole year without recording your fuel expense or any other expense representing roughly 3-5 percent of your income, so why is it accepted to ignore depreciation?