You need to know where your sweet spot is

• Every quarter your accounting department should do a company breakeven calculation.
• If the company breakeven has increased, compare the current breakeven to the previous quarters breakeven to identify increased costs.
• Eliminate unnecessary costs.
• Re-evaluate suppliers.
• Implement a price increase as a last resort.
• Build a new next quarter projected P&L budget.
• At the end of each quarter, you compare the budget to the P&L, to identify variances that you need to address.
• A quarterly budgeting practice identifies your business's sweet spot, restrains your spending, and increases your profitability.
• You need to do a quarterly projected cash flow budget to identify your upcoming cash outlays.
• Your accounting department must have the expertise and resources to complete these tasks in a timely manner – to run your business by the numbers.
• If you do not have a quarterly budget – you are running your business from your gut – instead of by the numbers.