Are You Using Your Numbers to Manage Your Business?

Posted on November 19, 2010

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Are You Using Your Financial Numbers to Manage Your Business?

Pulling together all of your financial information at the end of the year for your taxes is pretty much routine for most business owners, but as a financially savvy business owner, you MUST realize that there is “A wealth of information in your business numbers”.

Your business financial information holds a treasure-house of information that can take you from an average business owner to a wildly successful business owner.  You can take that information and make smarter, more informed business decisions.

Who Is Using Your Financial Information?

Uncle Sam uses that information to determine if you will get a refund or if you owe them money, a banker uses the numbers to determine if they will loan you money, but how do you use your business’ financial information?

Financial data is an indication of the financial health of your business.  It’s just like when you go to the doctor for a medical check-up.  Your doctor runs a variety of tests and then he lets you know if your blood pressure is high, if your cholesterol is normal or if you could stand to lose a little weight.

Well, just like the doctor runs tests, a really good accountant can tell you just how healthy your business is.

Is Your Accountant Helping You Understand Your Financial Position?

You see, a good accountant is like an interpreter.  They not only accumulate your financial data, but they also interpret that data for you.  They will be able to tell you just what your financial numbers are saying about the health of your business.

Your accountant should be able to answer a key question for you; “How Healthy is my Business”? If your accountant merely hands you a set of financial statements at the end of the month or a tax return around April 15th, you are missing a GREAT opportunity to really see the financial fitness of your business.  You MUST look beyond the numbers and see what your numbers are saying about your business.  Consult with an accountant today who can advise you and teach you how to use your numbers to make strategic business decisions.

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