As a business owner, having confidence in your numbers delivers the sense of control and clarity you need for achieving business as well as personal goals. Being happy in business has 3 foundations: #1 is to clearly understanding the numbers, #2 is developing a strategy for achieving your business and personal goals, and #3 is accessing qualified business advisory services that provide the support you need.
In my experience, being happy in business usually comes down to clarity. Taking the time to review your business from a numbers, strategy and insights perspective can be a worthwhile investment. When you understand where you are now and what’s possible in the future, with qualified business advisory services and support to help you navigate the journey, you will be well on your way to renewing your energy and enjoyment of being in business.
#1 Numbers
Put simply, you need to get the numbers right.
When you understand the numbers reported in your quarterly BAS, Profit and Loss Statements and tax commitments that include GST, payroll tax, fringe benefits and income tax, you will have the ability to make strong business decisions.
This means making the most of your accounting system. The key is accuracy and real-time numbers (offered by cloud-based systems) that will provide a true indication of your financial position.
Reliable data allows you to generate meaningful financial reports that will help you to understand your financial strengths, weaknesses, opportunities and threats. This type of financial SWOT analysis will help you to better plan your business activities and make crucial decisions that will allow you to achieve outcomes.
In its simplest form, understanding the numbers will give you clarity about where you make your money and where you don’t.
For example, the numbers may highlight that the services you most enjoy providing your clients are actually the least profitable. Demand for those services may be in decline or they may be too costly to deliver and don’t return the level of profit needed to sustain, let alone grow, your business.
Conversely, the numbers may indicate high demand for particular services or specialisations offering an opportunity for you to increase your fees, and in turn, your revenue and profitability.
In a nutshell, once you know where you stand financially, you can make better decisions.
These decisions may include reviewing your costs and changing suppliers to enjoy better rates and terms of payment; engaging staff with different skillsets; creating greater efficiencies by implementing or updating equipment; modifying or discontinuing declining services; and generating greater enquiry by better focusing your sales and marketing efforts.
This delivers confidence, a sense of control and the clarity you need for achieving business as well as personal goals, which will, without doubt, include feeling much happier about being in business.
In future articles I’ll explore #2 Strategy and #3 Advisory for setting a course for business success.
In the meantime if you would like to discuss your numbers and what that could mean for your business, let’s talk and work together to make a positive difference. Please email Brenden brenden@py.com.au or David david@py.com.au or phone 3217 5700.
P+Y Accountants and Business Advisors are known for expanding the possibilities for professionals and enterprising business owners.
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