The right financial information can transform any business into one that flourishes.

If your business lacks accurate financial information it’s difficult to get a clear picture of how its performing. You won’t know whether you’re making money, whether cash is OK or whether any outgoings need to be cut. But most importantly you won’t know the financial impact of your business decisions.

This is because accurate management accounts, such as profit and loss information and detail of the latest debtors and creditors position, helps business owners plan and make the right decisions. Having this knowledge can transform a business. It can show you where your business is today and the trend of these monthly numbers can show the current direction you are heading. It means that you can either make adjustments as necessary, or just have the confidence to push harder in the same direction.

But some businesses only rely on sales figures, bank balances or quarterly accounts from external accountants that don’t show trends clearly enough or soon enough. This lack of information not only stops businesses from growing but it can also hurt them.

There are three key things you can do to have the right information readily available:

  • Be cash aware – Understand, predict and manage your cash flows to give yourself enough time to act if there is danger ahead.
  • Get clarity on your profitability – Just relying on turnover growth can be very risky.
  • Find the right support – Make sure your organisation includes the right financial expertise to enable you to know your numbers.

These three elements are part of a wider finance infrastructure that your business needs to transform and grow. If you would like help setting up a financial system that accurately creates the information you need then email hello@yourrighthand.co.uk or call 01252 820002 and speak to our regional team. We’re always happy to help and offer a free two-hour initial review to help you understand how to make valuable changes to support your business growth.