If you're feeling a slowdown in business right now, you are NOT alone! Between the usual summer slump, tariff uncertainty, and economic nervousness, things are definitely off kilter. This is the PERFECT time for you to reassess and get your company into good shape. That includes:

• Getting your finances in order
• Looking at your fees against the rising costs of doing business right now
• Checking and refining your processes
• Marketing your services 

The best place to start is with your financial reports! They are going to help you prepare for the future, make a plan, and understand what you need to keep going. So even though you may THINK you know all there is to know about your reports, let's review!

1. Profit & Loss

You often hear this referred to as the P&L report, and it's a biggie!

• Shows your income, expenses, and profit margins
• A great way to see what services or revenue streams generate the most profit
• Helps you create smart strategies to generate more income
• Also helps you understand where you can cut expenses when times are tough

2. Balance Sheet/Cash Flow

This is more of a snapshot of where your business is financially at any given moment. You'll see:

• Bank account balances and what cash you have on hand
• What you owe
• Property that you own
• Credit lines, and more

Knowing how much cash you have on hand at ANY given moment is REALLY important as you look at your client pipeline and where you need to bring in MORE money to control your overhead. 

3. Accounts Receivable

Here's another pain point for most creatives: Going after those outstanding invoices.

• Tracks any payments owed to you!
• Helps you see who is paying late (or not at all - YIKES)
• Gives you information on whether you need to change how and when clients pay

No, it isn't fun, but this report will remind you that you should not do any work until you have some sort of payment. Period. You are not a bank and shouldn't be extending credit.

4. Accounts Payable

You know how you hate it when someone doesn't pay you on time? Don't be THAT person! This accounting report...

• Keeps you up to date on your own bills to pay
• Can forecast ahead so you can see what bills are coming
• Shows you a monthly overhead number

I always have an idea in my head of what my overhead will be every single month. That would include payroll, rent, insurance payments, utilities, etc. Once I understand that overhead amount that has to be paid, I can forecast the work I need to bill in order to cover it - AND make more money!

5. Revenue by Client or Service

This one is really REALLY important!!

• You should always know which client or which service is bringing in the most money
• That doesn't mean just the income - review the profit margin for each client and each service!
• Do the math, regularly, to understand this key financial report

You want to make the most money in the least amount of time or overhead. That's the key. So if consulting sessions are bringing you a ton of money, then do MORE of those! Understand where you're hitting those high profits!

BONUS: Ready to Take Action?

And that's the key, RIGHT?!? To actually take action! Sometimes we are overwhelmed by the financial terms, so we avoid looking at them! If that's you, then PLEASE download my free cheat sheet to understand Financial Terms.

👉 Click here to download the free guide now!

To tackle the rest of your business - from design business processes to marketing to scheduling - I’ve got you covered with my Design Project Blueprint course and templates.

P.S. Reclaim your time, streamline your projects, and elevate your design business with a proven system. It's built by a designer, for designers.