Thanks for the advice, Judy! I will definitely try to observe and evaluate my financial statements much more frequently. I have been guilty of building a detailed cash flow forecast and then not looking at it again for months, so it’ll be good to compare it against the real numbers more often.
I’m in the process of re-tooling something else that caught me by surprise, underestimating the costs and taxes associated with hiring employees instead of independent contractors. The additional payroll taxes, WSIB, etc. all add up. I was accurate with my business tax forecasts, but the payroll taxes and associated costs really stressed my margins. I’ve made some changes to my prices and discounts, and I’m now getting closer to the percentage I was hoping for.