Many businesses have really great and creative ideas. However, something which many entrepreneurs in all walks of business often miss is the importance of numbers.
If I were to ask you right now with no reference to paperwork or accounts about your:
• Net profits
Would you know the answers? Even if you only have approximate numbers can you personally account for your company figures? Accountancy isn’t just about just ticking boxes and meeting HMRC deadlines – it’s about understanding your financial aims and how the figures contribute to their success. Knowing your numbers in business can help reduce your exposure to financial loss and can be the difference between failure and success.
The most successful businesses that I meet are those who have a clear understanding of the finances of their business. Knowing your numbers means that you will be able to much more easily identify problems, discrepancies or issues in your business.
If you aren’t looking how do you know where your business is going? If your business is seeking finance or investors, this is the first aspect of a business that that will be scrutinised. Can you justify where your company is at right now and where it’s going?
Whether your goal is to make millions or to run an effective not-for-profit organisation, your numbers can make that key difference, supporting you to make the right choices for your business.