Profit: Do you know much you made this month?
Understanding how much profit your business is generating makes those big decisions easy.
Gut feel and keeping an eye on the daily bank balance may be OK for early stage companies, but with successful growth comes added complexity that needs a different management tool. Our clients tell us that understanding how much profit their business is generating each month, what the trend is and knowing what’s driving the numbers, gives them the information and confidence they need to make those big decisions easy. Obviously this all comes on the back of efficient book keeping already being in place and working well.
So what changes would you need to make to see your true profit each month?
In essence, for most companies, it’s about changing when things are done rather than what’s done. To file annual accounts, work out the tax bill and file VAT returns, all the financial transactions have to be recorded at some point anyway. Simply making your book keeping as efficient as possible and changing the processes to accurately record these transactions every month is the key to generating great financial information. This in turn gives you much more clarity of where your business is, and will be in the short and longer term.
There are of course adjustments that need to be made each month to ensure the numbers tell the story correctly, and these do require the right expertise, but these really don’t require much time and can save money by making the year end process much easier for your accountants.
If you’d like to have more efficient book keeping in place as well as better visibility of where your business is today, and where it’s heading next, please get in touch with our regional team on 01252 820002 or email email@example.com. We’re always happy to help and offer a free two-hour initial review to help you understand how to make these valuable changes to your business.