BLOG

Know your numbers, don’t get lost in the fog

There’s a lot of marketing noise about how rapidly technology is changing the way accounting gets done.

We know. We’re completely in the cloud and it makes a big difference to our clients and us.

But the technology doesn’t change the essentials and there is a real danger that businesses can get so caught up in the “how”, the graphs and the apps that they forget the real point of why they want the numbers in the first place.

Too many businesses are lost in the fog.

Five financial essentials

If you’re running a business can you answer these five questions?

  1. How is your business performing?
  2. How could it perform better?
  3. Who owes you money?
  4. Who do you owe money to?
  5. What is your cashflow like?

You need reliable answers to these questions to be readily available.

If you don’t have them then something needs to change.

Accounting software

It might be a software issue – we still see sizeable businesses running their accounts in spreadsheets.

Get some proper accounting software – there’s a lot of it about!

It might be a software issue – you’ve bought the software, they said it was easy to use, just like riding a bike, but actually no-one in your company knows how to use it properly.

Get some training!

Accountants

You might have accounting staff or a freelance bookkeeper, it’s quite likely you have an external accountant. But you’re still lost in the fog!

Change the people – improve them or lose them!

An MD’s cry from the heart

We’re working with an MD. She has a decent business, two or three staff, happy clients, made it through some difficult times and wants to kick on. She rang me because she doesn’t have reliable numbers and doesn’t know what to do.

In her case the bookkeeping has been poor and the accountants (gold medalists at non-responding) have barely shown up to make things right.

At least in this case the MD knew she was lost in the fog; we fixed it for her and gave her the clarity and peace of mind she was looking for.

How about you?

Let the fog clear!

 

Michael
@diaryofanomb

 

 

 

POSTED BY |IN , ,

Leave a comment