Know your numbers: Survey Says
We surveyed business owners to find out more
After working as a bookkeeper for over 20 years, with over a 100 businesses, it became clear many business owners need help knowing their numbers. My agency really wanted to comprehend how we can help them, so we conducted a survey. The survey allowed us to see where these business owners were and how we could assist them so they can better understand more of their business finances.
Know your numbers in real time
One insight that came out of the survey was that the business finances were not kept up to date in real time, which prevented business owners from seeing the ongoing connection between the finances and the operation of the business.What do I mean by real time? Real time means that at any given time, you should be able to get a clear picture of the company finances. Businesses rarely track their income and expenses on a day-to-day or weekly basis and there is a delay in updating their profit & loss report. With an outdated system, business owners may not even have access to see what is going on until a summary is presented at the end of the month or, for some, at the end of their fiscal year. This does not enable the business owner to have a clear picture of their numbers in real time, so they are not able to react and make changes in a timely manner.
Know your numbers and understand what they mean
Business owners need to know and understand their numbers. They have a great knowledge of the operation of their business and their industry, but they aren’t up to date on the numbers for their own business. Let’s face it, running a business is hard work and takes a lot of time, never mind understanding a profit & loss report, a cash flow report, or a balance sheet. I often hear, “I’m not sure, it’s with my bookkeeper or accountant.” Business owners need to have systems in place that they understand and can refer to at any time. My favourite reply is that you need to know your numbers.
Without a system in place that tracks finances in real time and that the business owners understand, financial decisions are being made solely based on a gut feeling or a reaction to what others are saying. Don’t get me wrong, I admire many of these business owners who seem to be reading off some secret script when it comes to financial decisions, but imagine the results if they used financial statements as a key indicator to business decisions. If you are a business owner, you can make the best business decisions if you have a good financial tracking system that is in real time and with features that allow you to know your numbers.
Know your numbers with C.Campbell Agency
To learn more, go to www.ccampbellagency.com. We can help set you up for success with QuickBooks Online and offer many resources through our client login to help you understand your business finances.