As beginning practitioners of The Great Game of Business, we understand the value of ensuring that every single person at 3Sharp can keep track of how 3Sharp is doing (in GGOB parlance, this is called Keeping Score). The easiest way to measure our success is with a financial scoreboard – and what better financial scoreboard to use than our own income statements?
That is why, every Monday morning, at our all-hands meeting, we walk through our income statement forecast for the month.
Forecasting Income Statements
Each line item has an owner who meets with his/her team to prepare a forecast for Monday morning. While we have the income statement permanently drawn on a whiteboard in our meeting area, we also keep a digital copy to make it easy to track for remote folks. Note the “Owner” column and the 5 week columns “w1, w2, etc.”
Everyone is empowered and encouraged to ask questions. While we do go quickly, the entire company has a vision into our revenue forecast, forecasted expenses, gross profit, and operating profit at the end of each exercise. It is our goal that everyone not only has insight into the health of the business, but to also have an idea of any hotspots in the income statement that can use further attention.