Whatever your definition of business success may be, there’s no getting away from the importance of having a firm grasp of your numbers.
As simple as it may sound, understanding your numbers generates significant benefits for a business owner, including the ability for you to make the type of strong and well-informed decisions that underpin business success. Clarity around your numbers will give you confidence. This will allow you to focus your energies on the aspects of your business you find most satisfying, to create growth through effective planning and, ultimately, to turn your business vision into reality.
#1 Strong decisions
When you truly understand the significance of the numbers reported in your quarterly BAS, Profit and Loss Statements and tax commitments – GST, payroll tax, fringe benefits and income tax – you have the information you need to make well-informed business decisions.
This information may influence the type of actions you need to take as well as the urgency of your decisions. Your numbers will inform you about the financial health of matters such as reviewing costs or changing suppliers; engaging staff with different skillsets; creating greater efficiencies by implementing or updating systems and/or equipment; modifying or discontinuing declining services; and generating greater enquiry by better focusing your sales and marketing efforts.
#2 Effective planning
Cloud-based accounting systems provide the platform to access real-time numbers, reliably and on demand, that accurately reflect your actual financial position. This enables you to generate valid financial reports to underpin the efficient planning of business operations and growth strategies for achieving your goals and key outcomes.
#3 Sustainable growth
Importantly, understanding your numbers provides clarity around where you make your money and where you don’t.
For example, the numbers may reveal that the services you most enjoy providing for clients may in fact be the least profitable. Demand for those services might be in decline or they may be too costly to deliver while returning the level of profit needed to sustain, let alone grow, your business.
Conversely, the numbers may indicate high demand for particular services or specialisations, thereby offering opportunities for you to increase your fees, and in turn, generate sustainable revenue and profitability.
Your next step…
In our experience, having a firm grasp of your business numbers is fundamental for maximising business growth, exceeding your business goals, enjoying your professional life and its financial rewards; that is, for overall business success.
It would be our pleasure to discuss with you how understanding your numbers can make a positive difference in your business. Please email Brenden [email protected] or David [email protected] or phone 3217 5700 to talk with a member of the P+Y Team.
P+Y Accountants and Business Advisors are known for expanding the possibilities for professionals and enterprising business owners.
The information contained here is general and not intended to serve as advice. Any information supplied is not a substitute for independent professional advice. We do not warrant the accuracy, reliability, completeness or adequacy of the information or material. All information is subject to change without notice. P+Y and each party providing material displayed here disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. Users are encouraged to contact P+Y for advice concerning specific matters before making any decision.