Your financial reports tell you the story of your business; allowing you to interpret the results of your business activity. The better you understand your financial reports, the better your decision-making and results will be.
We want to share the benefits of understanding your numbers, give you an overview of the standard reports, and provide helpful tips on using them to improve your business. Where possible, we've avoided jargon and 'Accountanese', however, if you need further support or guidance from us, please do get in touch.
The benefits of knowing your numbers
Knowing your numbers will allow you to:
- Understand whether your business is growing or shrinking
- Track trends over time
- Compare results to your expectations (as set in your budget)
- Compare results between years or different periods
- Identify areas of strength and weakness
- Measure your business efficiency
- Measure the value of your business
- Identify symptoms of underlying problems
- Measure your cashflow
- Make better business decisions