THE REAL LANGUAGE OF BUSINESS
It’s probably safe to say that most people (not just business people) aren’t super-comfortable with numbers. Business people in particular are generally good at other things, such as designing things, building things managing things or selling things. The bookkeeping and financial side of the business is not overly sexy in comparison.
However, we tell all of our clients that “numbers are the language of business” and that it is vital to understand your business numbers so that you:
- Know what’s happening in the business
- Know which parts of the business are performing well and which aren’t
- Can manage profitability and cashflow
- Can make better decisions to maximise the performance of your business
Without a regular review and analysis of your numbers it is highly unlikely that your business is performing at it’s potential.
What to do about it?
Now, we don’t expect you to become an accountant. And let’s face it, most accountants make it far to complicated for their clients.
We recommend that you get a sound understanding of the BASICS and that you feel confident when presented with your business numbers. Gaining this understanding doesn’t need to be difficult either – it’s about selecting some key reports to look at and then reviewing these on a regular basis. For some reports this this might mean weekly, for others it will be monthly or quarterly.
We’ve found that the best way for our clients to become better at understanding numbers is to give them a quick overview of some key reports and then get them to look at the right reports on a regular basis. Looking at REAL reports and REAL numbers are far more meaningful than doing some type of financial management course.
Is it worth the effort?
Looking at the numbers is one of the first steps when we work with a client. As the saying goes, “the numbers don’t lie”, and a review of the financials gives us a very clear picture of how the business is performing and what needs to be addressed and prioritised. We want to give all business owners the skills and confidence to do this review on their own business on a regular basis.
How can Nine Pillars help?
Anil Puri, who heads up our Business Improvement division, is a trained accountant and really understands “the numbers”. However, even more important is that he can speak in plain English when it comes to helping you to understand these numbers. Anil has worked with hundreds of business people from tradespeople to manufacturers, through to service professionals such as accountants and solicitors.
Anil knows which numbers to look at for each individual business plus how to explain these numbers depending on the owner’s background and experience. Feel free to speak to us if you’d like a one-off review of your financials and business numbers and a confidential assessment of what you can do to maximise the performance of your business. After all… the numbers don’t lie.