Having been in my current business for over 2 years and meeting numerous self employed business people I am quite gob smacked as to how many companies still leave it til after the year end (and i mean around 6 months!!) to find out how the business has performed. Between 12 and 18 months dated information!! WOW!
This is crazy! especially in this economic climate.
Information is to any business! To be able to make important decisions you need the correct up to date information. Using old out of date information will not help at all!
A client of mine is always saying ‘Fail to Plan and you will Plan to fail!’ This is so accurate with businesses who do not see the importance of regular KEY information.
My five top tips to regular information:
- Regular Bookkeeping – If you can’t do it yourself then get in an expert on a regular basis to complete this task.
- Cash flow – update your cash flow current and forecasts and this will be achieved by:
- Reviewing Customers – getting regular credit notifications on your customers will help plan work
- Management Accounts – A good accounting software will give you accurate management figures
- Talk to Experts on a regular basis – speak to your accountant, bank manager, and your Staff! they will all help you keep up to date with what is going on.
Key information in your business is not just confined to finance, other areas that should be considered are: Employees, Current climate, Marketing & Sales and Operations to mention a few.
So to finalise, any business or company who wants to survive and grow in this economic climate needs (and i mean NEED) to have the regular KEY information at their fingertips.
Thanks for reading this blog and any questions please do not hesitate to leave any comments.