Knowing your numbers is essential to running any business, but did you know regular reporting and a sound understanding of figures in your business can and will lead to improved saving, better profits and peace of mind? All of which will help achieve that sense of zen we promote here at Satori! In this blog we explore exactly what regular reporting is, the questions you need to ask yourself as a business owner to begin the process and how to get started. Read on to discover more…
The challenge of reporting
When the pandemic hit, we saw most of our clients enter panic mode, this was something completely unprecedented and had huge implications and impact on all our clients. Customers were concerned about outgoings, overheads, staff and cash into their businesses and really didn’t have a plan for how to tackle what lay ahead – to say things were uncertain was an understatement. As financial planners and advisors it was our job to lighten that load and help and guide our customers through that tricky time but what we all learnt from that experience is that you must be clear on the finances of your business and know where you are today in your business. To put it simply, you must understand your figures.
What’s the challenge with reporting?
Typically, there are three main things that business owners’ flag as issues when it comes to understanding their finances associated with their businesses.
- I don’t understand the numbers
- I don’t have the time
- I can’t afford to outsource financial management
Our response to these issues is simple, get clarity and take corrective action. If you find all of the above questions resonate with you – why not work with a professional to take the pressure off? Find a way to create funds that will enable you to pay a professional – the return on investment will come back to you in peace of mind, time and feeling good in the knowledge that you understand the financial picture of your business.
What is regular reporting?
We have automation and technology available at the touch of a button but integrating that technology into your business and making it work for you is another story. In order to get started with reporting your bookkeeping must be up to date – are you claiming tax correctly? Are you underclaiming? Are you compliant?
Ensuring your information is correct is the first step in this journey, we’d recommend working with the team at Satori to manage this side for you if you aren’t certain in answering any of these questions.
Getting started with reporting
There are a few key reports we’d recommend every business owner has and is aware of:
- Management Accounts – preferably monthly but no less than quarterly
- High level Profit & Loss information showing sales/turnover, gross profit/margin, top 5 overheads, net profit and tax forecast
- Highlight of KPIs – the key performance indicators specific for your business
View our recent Facebook Live ‘Satori Session’ to hear the breakdown and overview of each report
Benefits to regular financial reporting
If you engage in regular reporting, you will have a better sense of how your business is performing. The lessons of the pandemic taught us that you must know your position now and today, this enables you to address change and anomalies confidently as and when they arise. Furthermore, you can make sure you are claiming tax correctly, project your budget for the future more accurately and make decisions on saving in a more effective way to give you the lifestyle that you want.
Our advice is just get started! Book the call, start with one report and the rest will follow. It really is like riding a bike, the more you do it – the easier it gets!
If you are interested in learning how Satori Accounting can help you get back to your dream business book a discovery call with us today.