Circumstances can change quickly in business, and an unexpected tax bill, the loss of a major client, or the need to replace a piece of equipment can be catastrophic if you are caught unaware.
Too many business owners try to manage their businesses with incomplete financial figures - and they don’t even know it. Without a close understanding of your business financials, you could be playing a risky game of chance with your business.
Are your financial figures giving you the complete picture?
Every business needs to stay close to their financials, however, often business owners don’t have the information they need, or may not know what they need. The most common reasons why business owners don’t have a complete understanding of their business performance include:
Relying on inaccurate numbers
Sometimes business accounting systems just don’t produce the financials that are needed, or produce financial statements that don’t provide the critical information required to gain a true understanding of business operations. While a Profit and Loss Statement may highlight what looks like a healthy business, your cash flow position could indicate a very different result, leaving your business vulnerable to a cash flow crisis or insolvency.
A ‘she’ll be right mate’ attitude
As a small business owner, you may feel like you have your finger on the pulse, keeping tabs of your cash flow in your head and responding to the peaks and troughs of customer demands by experience and gut feel. This type of ‘she’ll be right’ attitude can leave you exposed to risks. A forgotten loan which matures or the loss of a major client can change your cash flow position very quickly and this could leave your business in dire straits. Cash flow issues are still the most common cause of business failure.
Sometimes the issues affecting a business may not be obvious during your day to day operations, and without keeping a close eye on your financial figures, you could find yourself in a position where it could be too late to fix a problem. Even highly profitable businesses with large cash resources can be caught off guard by not keeping a careful eye on their business financials.
Seeking professional advice can add enormous value to your business. If you have any concerns about the quality of your business financials or have an issue you would like to discuss, I encourage you to take advantage of our FREE INITIAL CONSULTATION. We can assist you to protect your financial future by examining your financials to ensure they are accurate and appropriate and provide a true understanding of your business performance.
At Berkmans we apply 40 years’ experience to tailor financial management strategies specific to the needs of each business. We specialise in helping small and medium sized business owners on the Central Coast to save tax, enhance profitability and enjoy the prosperity you deserve.
Please contact me on email@example.com or call 4351 2622 to take advantage of our free initial consultation.
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