Imagine you are about to take a long journey. Before you head off, there are many check that you takeout to ensure you have a smooth ride.
Check the tyre pressure, oil, and water. Put in enough fuel and map out your journey.
Running your business should be much the same - making plans and running checks on your journey should be as important as selling your products.
When driving you know that at all times you must have awareness as to your position, and what is behind you and in front of you.
A good driver never changes lanes without checking his mirrors.
So what lessons can we learn here? As a business owner you should be checking constantly to monitor any change, and be aware of your companies financial position,
This gives you insight which effects key decisions such as sales and marketing and #recruitment. Equally it means that you are aware of #taxliabilities, and can forward plan with your advisor to efficiently manage your business.
Checking your P&L monthly, if not weekly (or daily in some cases), is an essential to running your business.
How #Xero can help you drive
Xero, or any accounting software, will give you reports that help you monitor your business.
The budget manager is a fantastic tool to help you plan ahead, giving you the change to make changes in advance.
What am I looking for?
Checking in on your P&L regularly will mean you
Can better plan for tight months
Plan for periods of growth
Put money away for tax planning
Insight from your expenditure
Know when you need up your sales strategy
Be a responsible business owner
Forecast your future business strategy
Be ready to get an instant decision from lenders
If you would like any planning help or advice, get in touch! We love helping businesses look forward --->
hello@bluearrowaccounting.co.uk