Does this jumble of rope visualise the state of your business finances?
If the answer is yes, you might want to read on. Would you prefer it to look like this neatly wrapped shank below? Let me help with demystifying numbers.
This is the third in a series of articles to assist you as Owner or Leader of a business with knowing the questions to ask of yourself and your finance team. Don’t miss out on reading the first and second articles which are also about key questions to ask.
Being on top of your numbers enables informed and timely decision making, building the foundations for a more resilient business.
This week the focus is on profitability. Ideally you will be all over this:
- What is the result year to date, and how does that compare to budget?
- What is your forecast result for the year to June?
- What are the significant factors that could impact the results?
- Gross and net margins- what do you aim for, and what do you actually realise?
- Where and why do you lose margin?
Confident that you know all this? That’s brilliant.
Not feeling quite so confident? Making you feel a little uncomfortable by highlighting some gaps in your knowledge?
As a first step, can I suggest you spend some more time with your finance team. If you are struggling to get the information you need or feel self-conscious around your financial literacy you may want to source a second opinion.
Debbie is the friendly face of finance. Very much a people person that happens to do numbers. She coaches business owners and leaders through demystifying their numbers and building the foundations for a resilient business.
She has 30 years’ experience across professional practice and large entrepreneurial private business. Credentials include Chartered Accountant, CFO, GAICD, Executive and Organisational Coach and Telstra Business Women’s Award Finalist.
