Managing by the Numbers

From Kelly Kendrick, First Bank & Trust Company:

With just over a month left in 2011, most of us are beginning to think of business strategies for 2012.  As a business owner, how can you continue to weather the current economic climate and come out on top?  Here are some tips that can give you a fresh perspective on your business in 2012.

Kelly Kendrick of First Bank & Trust Company reviews a profit and loss statementReview your company’s P&L (profit and loss statement) and Balance Sheet monthly.   Realize the direct correlation between the two statements – an increase or decrease in one directly impacts the other.   

Examine your Cost of Goods Sold and your Operating Expenses on your P&L.  Determine where you can make adjustments in these categories to achieve a Net Profit.

Plan to use your cash inflow from Net Profit to fund a portion of your company’s growth; this will result in a greater company Net Worth (assets – liabilities).  Remember, company growth is not always a good thing when it’s only financed by debt.

Increase your company’s Current Assets such as cash, accounts receivable and inventory without increasing your Current Liabilities such as accounts payable, lines of credit, and current portion of long-term debt.

Manage by the numbers and make a commitment to your company to increase profitability and establish a strong capital position by increasing your company’s net worth.


First Bank & Trust Company, one of the top community banks in the United States, is a diversified financial services firm with office locations in southwest Virginia, northeast Tennessee, and the New River and Shenandoah Valleys of Virginia. Financial objectives are addressed by offering free checking products for personal and business accounts, and assessing lending solutions managed by mortgage, agricultural and commercial lending divisions. Comprehensive financial solutions are available through trust and brokerage service representatives. For businesses, First Bank & Trust specializes in business loans, business credit, and business finance.

You're invited to read more from Kelly Kendrick and First Bank & Trust Company on Handshake 2.0.

Kelly Kendrick, Assistant Vice President, First Bank & Trust Company, is a client columnist for Handshake 2.0. First Bank & Trust Company is a client of Handshake Media, Incorporated, the parent company of Handshake 2.0.

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