When people ask, "how can measuring the past help me with the future?", one thing they're not realizing, is that the past we want you to be looking at is last month. What happened last month can help you in many ways. The hotel I stayed at last month overcharged me for my room. I was quickly able to get them to reverse their mistake. The client you worked for last month hasn't paid yet, so you can send out a reminder invoice. The inventory that's not moving can be put on sale, or bundled with another product for faster turnover. The rate increase in your costs of goods that sneaked up on you last month can be reflected in more accurate pricing. The salestax increase for Seattle from 9.5% to 9.6% can be updated now, even if you forgot to last month. That subscription service you no longer need but charged to your credit card last month anyway can be canceled permanently. You can negotiate lower bank fees on a monthly basis. The new counter clerk you hired--the one who apparently doesn't know how to make change--can be sent off to a job for which she's better suited because yet again her register didn't balance. There are at least 1000 ways your business can die over time by neglect to your bookkeeping. Equally true, there are at least 1000 ways you improve your business profitability with clear, accurate accounting. What do you chose? Death by 1000 cuts, or finding 1000 small ways to improve your profitability?
