“Annual income twenty pounds, annual expenditure nineteen pounds.
Annual income twenty pounds, annual expenditure twenty-one pounds.
Do you know what profit you made last year? Do you know if you even made a profit last year or was it a loss? What about last quarter? What about last month? Do you know if your profits or losses are increasing or decreasing? Is there a trend? Is this being addressed?
“Know your numbers is a fundamental precept of Business.” Bill Gates
Far too many business's only way of knowing how they are going is when they get their annual financial statements from their accountants. This is often six months or more after the end of the financial year and is old news. Often the reports are complex and the business owners do not understand them. They are told what tax they have to pay but are not given any commentary on how their business performed during that year.
Many commercial businesses and primary producers are making decisions all the time without knowing what impact they will have on their bottom line. They may expand the business and increase turnover without realising that they are actually going backwards. By the time they find out it may have cost them several hundred thousands of dollars not to mention undue stress.
Flor-Hanly helps clients know their numbers now!
With modern technology such as cloud accounting there is no reason why you should not know what your profit was for the last month now. We help clients set their systems up to produce accurate timely information and meet with them regularly (monthly, quarterly or half yearly depending on the business) to discuss and explain their results. These strategic meetings are like a board meeting and not only do we focus on the numbers but we also discuss strategy.
Knowing your numbers now and meeting to discuss them makes you FOCUS on what is happening in the business.
Knowledge is power. Knowing what is happening now allows you to take action now. You can develop strategic planning, correct problems, prevent disasters and take advantage of opportunities. The result of each decision you make can be monitored quickly to see if it is working.
Contact our accounting team on (07) 4963 4800 or email to arrange a complimentary discussion about how we can work with you.
“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” Henry Ford
Copyright © Flor-Hanly 2023.
Liability limited by a scheme approved under Professional Standards Legislation