Wyoming Business Tips for May 20-May 26
A weekly look at Wyoming business questions from the Wyoming Small Business Development Center (WSBDC), part of WyomingEntrepreneur.Biz, a collection of business assistance programs at the University of Wyoming.
By Bruce Morse, WSBDC Region 2 director
"As I look at the information from the accountant after filing my taxes, it is apparent that I need to understand the financial side of my business better. Can you help with that?" Carol, Wheatland
This is a fairly common theme this time of year. Perhaps you received the news that you owe some tax to the IRS because you made a profit? Yet, you don't have the cash to actually write that check. How can this be?
There are a number of reasons this could happen, and many business owners do not truly understand all of the financial relationships that take place. The income statement is fairly familiar to most as it tells you whether or not you made a profit, but the balance sheet is typically not as well understood (if they even know what that is). Yet, it is on the balance sheet that cash is managed.
And we pay bills with cash, not profit. Do you have money tied up in accounts receivable? Do you have excess inventory? Do you have loan principal payments to make? Is debt structured properly, and so on? All of these could be part of the answer.
Until September, Wyoming Entrepreneur-Small Business Development Center has made available, to every Wyoming business, a program called Profit Mastery. It is free, and is a great resource to help business owners obtain a better understanding of the financial side of their business.
To learn more about this program, visit our website at www.wyen.biz and click on the "Profit Mastery" button at the bottom of the home page. This is an online course that can be taken at your convenience, with great tools to assist you in implementing the concepts in business. For questions about the program, contact a local Wyoming Small Business Development Center, or call 1-800-348-5194.
A blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.
The WSBDC is a partnership of the U.S. Small Business Administration, the Wyoming Business Council and the University of Wyoming. To ask a question, call 1-800-348-5194, email firstname.lastname@example.org or write 1000 E. University Ave., Dept. 3922, Laramie, WY, 82071-3922.