Do you know your business numbers?

Given everything you have to do to run your business we bet you’re short of time… so short of time in fact that you may have given little thought to your bookkeeping and accounts.  Or you may be planning to give it all to an accountant – when you get round to finding one.  In the meantime you hope that enough cash comes in each month to pay the bills and leave something over for you.

We bet that wasn’t the plan when you gave up your job to run your own business. Just as working 50-60 hours a week and not seeming to get any time off wasn’t part of the plan either.

Fortunately it doesn’t need to be like that.  But you will need to make a few changes.

One of the first is to get a good accounting system to produce your business numbers. We call them business numbers and not accounts for a reason. You see accounts conjures up in most people’s mind the figures the accountant prepares at the end of the year (usually well after the end of the year!) to work out how much tax you owe and to send to HMRC.

By business numbers, we mean something completely different.

Anyone running a business should know the financial state of the business on a regular basis.  And more importantly should be able to use the financial information to manage it more effectively, increase revenues, save costs and take important strategic decisions about the direction of the business.

Unfortunately, too many business owners fail to get the most out of the financial information available to them.  Some are genuinely afraid of the ‘money’ side of the business, others find numbers confusing, and most have been conditioned into thinking it’s all too complicated.

But don’t be put off.  Understanding your business numbers – when they’re produced properly – is what frees up your time to spend the right amount of money on the right things to develop and grow your business.

There are lots of free tools and resources to help you understand your business numbers. If you’d like to know more get in touch.

Noel Guilford, Principal at Guilford Accounting
Noel Guilford is the principal of Guilford Accounting a small business accountancy practice specialising in advising owner-managed businesses on current accounting, finance, and tax matters. You can reach him via email at noel@guilfordaccounting.co.uk or by phone at 01244 660866. He is the author of the 'Figure it out - an entrepreneurs guide to understanding your business numbers' which you can obtain by visiting guilfordaccounting.co.uk.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ His latest book, How to Build a Successful Business' will be published in 2018.

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