Do you know how your business is doing on a daily/weekly/monthly basis? or do you wait until your accountant prepares your accounts once a year after the year end?
Your books or figures are signposts to growing your business, making more profit and avoiding cashflow problems. What would be really useful
for you to know for your business? I am not talking about the P&L document you may already receive and never look at I am talking about
a regular report that will help you stay on target and maximise profit, a document that;
Think about what financial information you need on a regular basis to help you understand how your business is doing? And are you able to access that information easily and whenever you want?
For example. As an accountancy firm the key pieces of financial information for us include:
Some business are much more complex in that they may have several income streams, costs may be more volatile, the business may be growing or shrinking. For these types of businesses having regular management accounts will be more
relevant than a few KPIs like ours.
With the excellent cloud bookkeeping software that is available these days, such as Kashflow, Xero and Quickbooks, it is a lot easier to have
relevant and timely financial information whenever you want.
When did you last think about what financial information is key to your business and if you are able to access that information easily? List the key things you want to know to help you improve your business and speak to your accountant about how to create easy access to that information so you can use those numbers to your advantage.