Keep on Top of Your Financial Information
As the Business Owner, you are supposed to be the expert in the area in which your company provides products or services. For most Business Owners, this is generally linked to something that they were trained in, and it is usually the key focus of the service provided – for example, roofing, engineering, or construction.
Most Business Owners have not been trained in Finance.
And whilst you are not expected to be the finance expert, it is vitally important that you understand your financials and your cash flow.
How Your Numbers Reflect Business Performance
You must Know Your Numbers.
Many Business Owners who have run their own company for many years are often too proud to admit they do not Know Their Numbers.
Why has this happened?
Typically, because most accountants and finance professionals do not want Business Owners to understand Their Numbers.
Understanding Business Finance Is Not Difficult
It would mean telling the Business Owner that Knowing Their Numbers is not difficult.
It would remove the myth that accountants are much cleverer than Business Owners.
Is Your Accountant Proactive?
What happens with most accountants?
Meet once a year, sign the accounts, send a cheque to HM Revenue & Customs for corporation tax and pay your personal tax on time. Don’t ask any questions and do as you are told.
No. This is wrong. This does not need to be you.
Your Business Finance is Your Responsibility
Finance is not difficult and is not something that you should run away from. You do not need to be the cleverest person on the planet to understand Finance.
Yes, bring in people to help you who understand accounts and finance either full-time, part-time, or on an outsourced basis, and ensure that everything is fully taken care of.
You must remember though; they are Your Numbers.
You Must Know Your Numbers
Don’t delegate them and ignore them.
Own Them and you will Know Them.
Ask lots of questions. Understand what the Numbers mean. More importantly, understand the key numbers for your business – Know Your Numbers.
It is important to take financial management seriously and not to avoid personal responsibility.
After all, it is your business.
If you Don’t Know Your Numbers, You Don’t Know Your Business.
Do you Know Your Numbers?
