Your critical numbers are the ones that tell you whether your business is on track (or not). If you know your critical numbers, you can have real peace of mind that all is well, and an effective alert system when potentially all is not well and action is needed.
Here’s a list that you are likely to recognise, but much less likely to have acted on.
A lot of businesses we work with are just overwhelmed and unable to take any action on any of these financials because it’s not relatable - too much jargon and looking at rows of figures that don’t mean much. The reality is that it can take a lot of time and effort to learn to understand how to read the numbers for your business as well as your accountant. But the good news is, there are ways to translate these figures into something that makes sense to you.
Be clear about who in your business is the right person to be working in this area. If it’s not your strength, find someone in the business who loves it and will excel, or engage with a professional who can tailor their service to just what you need. In this age of Cloud Software such as Xero, support can usually be provided remotely without any interference to your business or needing to provide space or computers. Consider engaging an advisor who can really understand your software and systems and extract the information you want. For example:
This way, rather than looking a whole lot of numbers that don’t really mean much to you, you can look at a few key numbers and compare them over time.
Its is critical that the financials for your business are made up from complete and accurate data. But can you trust that the data is right? We see a lot of businesses where the owner has their own separate spreadsheets and manual systems to keep data they feel they can trust. It takes a lot of time, and usually is duplicating what is already in the accounting system. Here are a couple of things you can do to ensure your critical numbers are real:
We work with businesses to work out what the critical numbers are, ensure they are being recorded accurately, and are reported in a way that is clear and easy to understand. Want to find and track your critical numbers? Book a free one-hour discovery session with us and we’ll help you get started. Call me Helen on 0276005794 or email me on to get started. We work with businesses to work out what the critical numbers are, ensure they are being recorded accurately, and are reported in a way that is clear and easy to understand.