Wouldn’t it be nice to have a simple guide to help you understand the financial performance of your business? Imagine having an easy to use approach that lays out step by step what you need to do in order to stay on top of your financials and build a thriving business. That is exactly what Jeff Newkirk has developed in his REAR approach to financial management for business owners, executives, and organization leaders.
Review. Examine. Adjust. Revise and Realize. This simple approach tackles some of the most critical decisions that must be made in order to achieve a sustainable and thriving business. You must know and understand where you have been in order to prepare for a better future. While Newkirk provides the ins and outs of his REAR approach for improving financial performance, the concept can easily be transferred to other segments of the business and even your personal life.
R.E.A.R. Approach: Review. Examine. Adjust. Revise and Realize.
Put financial stress and anxiousness behind you with the REAR approach. Looking back to figure out how you got to where you are now is critical to determining your future.
Review the current state of your financial condition. Know the key financial outcomes of your business.
Examine every line item in your key financial statements to better assess the positive and negative sides of your financial equation. Dig into the detail. The positive side is the revenue and cash inflow needed for your business. The negative side, or expense and cash outflow need to be controlled for a sustainable business. Remember, not all revenue is equal. Neither are expenses.
Adjust your line items as needed. Meaning, tweak the details based on your examination of where you are at now. Once you adjust, you can put it all together. The future state of your business is going to be different than where you are now, or where you have been. That’s okay, it should.
Revise the financial projections and budget for your business to reflect where you are going. As a result, you will be able to Realize the fruits of your labor and enjoy a thriving business with an improved bottom-line.
Now, enjoy life. Don’t worry about the financials. The forensic financialist has it covered.
Mike Saunders, MBA
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