A while ago I attended a presentation by Dr. Shealynn Buck called “Living Well to Lead Well”. I found a lot of similarities between what she spoke about and what Iconis Group tries to do with our clients. The first thing she spoke about was the real definition of healthy. This is an important point. According to the world health organization, health is “a state of complete physical, mental, [emotional], [spiritual], and social well-being and not merely the absence of disease or infirmity.”
Healthy doesn’t mean lack of disease! It’s so much more than that. Buck shared with us a spectrum and I want you to visualize this. Think about a scale from -10 to +10. The more negative you are, the more diseased you are versus the more positive you are, the more healthy you are. Most people think if they are without disease then they are in the positive range, but Buck’s point is that being without disease just gets you to zero. You’re even, but not more.
Let’s relate this to your business and your books. Since the books tell the story of your business, they are the vitals we check to diagnose your health. If your books are in disarray, then your business is diseased. It is my belief that you can’t do more until you are even. You can’t get truly healthy and reach your business’s potential without getting to zero first.
Here are some the basic tasks needed to get your books to zero:
- You reconcile your bank and credit cards monthly
- You can foresee your cash flow for the next 30 days
- You are accurately recording transactions in the right categories (asset vs. expense, revenue vs. deposit, etc)
- You can run either an A/P aging or an A/R aging and get an accurate picture of money that you owe or that is owed to you
Once you get to a state without disease, then you can start getting really healthy. This is the fun part of our jobs at Iconis Group – helping business owners really maximize their potential. We can start creating strategies on how we are are going to reach those goals and determine how we are going to measure success.
So, here is my question to you – How healthy are your books? Are you comfortable that they are accurate and the information you get from them is timely? If not, it might be time to dedicate your resources to getting them and your business really healthy.