How Do You Know If Your Business Is Healthy?

As you will see today, measuring the health of your business is not much different
than measuring your own personal health.

Is your business healthy? How can you determine if it is or not?

The process mimics how you determine your own personal health. When you see your own personal physician for your annual checkup, they start with some basic information. In the medical field, these are called “vital signs.” Your blood pressure, body temperature, height, weight, etc., are captured before the doctor even sees you. The doctor then listens to your heart and lung palpitations and asks you how you feel. Based on this simple process, the doctor determines whether further tests are necessary.

Your business has vital signs that can be measured and monitored, as well. They aren’t physical signs, though—they’re accounting signs produced as a part of the accounting process. Naturally, you have to have accurate and up-to-date information to determine the relative health of your business.