Does the thought of preparing your business numbers every month, bring with it a sense of dread and loathing?
Most business owners see the numbers as “Not Fun” or wishing it were not in their job description. However, they can answer some important questions, such as
- Are my products priced correctly?
- Do I have enough cash to make payroll?
- Who are my A grade clients?
Knowing your Numbers builds Strong Foundations
Understanding your weekly numbers gives you the ability to track the income you make from sales, how much money you’ve spend to generate the sales and the profitability of the business. This allows you to plan more effectively, improve your sales process and forecast with more accuracy.
Financial reports raise possible issues sooner rather than later – Tracking sales, staff performance and productivity, production costs can help to identify errors fast, minimise the effects and help to maintain existing client base.
Awareness is key – As you and your staff become more accustomed to regular reporting, performance in all areas can be better managed to ensure the future success of the organisation
Value of the Information
Regular financial reporting requires staff members to take responsibility and to be held accountable for the numbers they produce every day. It can often highlight individual strengths and areas that require improvement.
Make the numbers fun for yourself, play some great music, change your mindset from “This is boring!” to “Where did we win this week?”. Share the enthusiasm with your staff and watch how the company culture around numbers change!
Refocus your Energy
With better and more frequent reporting systems in place, your stress levels will reduce significantly because you will know the current and forecasted trajectory of your business. Less stress gives you time to focus on the future and reduces if not eliminates the need to put out the daily spot fires.