The 3 Things You Want From Your Numbers
As a business owner you know that it is important to have accurate numbers, but then what?
I find that most business owners are often left confused when they are handed their reports because they don’t always know what the numbers mean.
As a business owner you want more than just numbers, you need data that you can understand. This is how you, as the CEO of your company, can increase your financial intelligence and use the data to make decisions, so that you can take your company to the next level.
So how do you get this data from the numbers?
1. Timeliness: Depending on the size of your company, you want to be looking at numbers as often as is critical for decision making. If you are just starting out then reviewing your numbers monthly after the fact is a great place to begin. As your company grows you may want to be reviewing your numbers biweekly (or around a payroll cycle), weekly, and ultimately daily. Tip: Have a money date on your calendar and make sure you honor it.
2. Structure and Reporting: Receiving the right reports is what will support you in running your company. The Profit and Loss and Balance Sheet are what most people are familiar with and certainly knowing these reports is the best first step. Then depending on your management style and the nature of your company, there are reports that can be custom created to meet you where you are and support your decision making style. Tip: If you have expenses specific for jobs, you can have reports created to show profitability by job.
3. Interpretation: Numbers without interpretation are just that -numbers. The role of a CFO is to interpret your numbers for you so that you have information you can understand. This relevant information will up level your financial IQ as the CEO of your company which will allow you to make better and more confident decisions, so you can truly take your company to the next level. Tip: Having this CFO on your team will help you to detect red flags before you throw away too much money.
Every business must have a CFO interpreting their numbers. Without this person there is a void in the business. Your CFO turns numbers into intelligence; this is how they add value to you and your company. Is it time for you to up level your accounting support? We created a new offering with you in mind the “CFO Financial Review” You can learn more about it by clicking here.
Imagine how it would be to understand what the numbers were telling you.