Without money flowing through your business, your business wouldn’t exist. Therefore, the finance and accounting area of your business requires a large amount of attention. Accounting requires expertise, and as much as we like to think we are experts across all industries, the reality is that not all business owners are savvy in the accounting field.
The strengths and weaknesses of your business can be told through numbers. It allows you to make more informative business decisions that will help your business grow. However, some businesses see positive numbers and think they are good to go. They then don’t see any reason to look any further into it.
But think of it this way. What if most of the revenue in your business is coming from one customer? Suddenly this customer decides to sell their business or close down? Do you have a back-up plan? Suddenly you have lost 70% of your revenue, how are you going to pay the bills now?
So, what can you do to approach your numbers in a more strategic way?
Focus on sales
Let’s be honest here, money often does buy happiness. The same amount of time that goes into planning your businesses vision, building rapport with customers and promoting your business should go into developing your sales plan. This can be anything from following up on leads, networking, flyer drops, cold calling, you name it! keeping track of where your sales are coming from is important so you can focus more time and energy into what is working best for your business. Without sales there is no money.
Take notice of your numbers
The numbers in your books tell the true picture of your business. Your accounting books reflect your success and assist you in seeing the areas for improvement in your business. Without analysing the numbers, you won’t have the information to grow and improve your business.
Engage an expert
All successful businesses have advisors who assist them to prepare and execute their business goals. Unfortunately, all business owners are not accounting experts and don’t have the knowledge to analyse their numbers. The good news is its 2019, you can automate bookkeeping processes with accounting software. You can then engage an accountant to review the numbers with you and give you advice as to how you can improve them. To find out what accounting software is the best fit for your business, click here.
When you first start your business, whether it’s to have the freedom of being your own boss or you have a hobby that you want to turn into a career, making revenue always needs to be at the forefront of your mind if you want your business to succeed.
At Power2 we have assisted many business owners in achieving their business goals and then continue to leverage that success and turn it into a thriving business. If you’re ready to learn the tips and tricks to make your business thrive, click here to contact Power2 today.
Information provided is general advice only and does not take into account your personal objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information having regard for your own circumstances, personal objectives, financial situation and needs. When deciding whether to acquire or continue to hold a financial product(s), you should first obtain and consider the Product Disclosure Statement(s), Information Statement(s) and/or other relevant product documentation relating to that product(s).
Financial Planning services provided as Authorised Representatives of Power 2 Financial Services Pty Ltd ABN 51 164 747 595 Australian Financial Services Licence No. 444078