A lot of small and medium sized businesses only ever look at their financial information through their rear-vision mirror. Once a year they receive financial statements and tax returns for a period that ended 6 months ago, have a quick look through them, and chuck them into the bottom drawer where they are never seen again.
If you drove your car like you use your financial information, you’d have a clear picture of where you’ve been but you would have no bloody idea where you’re going. You can be looking in the rear vision mirror as you’re going through a field and thinking ‘shit, how did we get here’, but never giving yourself the chance to look through the front-windscreen to see you’re about to smash into a lamp post.
The lamp post is a metaphor for a cash shortfall, a financial year loss, or falling short of the goal you set yourself to buy the new piece of plant you had your eye on. This isn’t an effective way of managing your resources and means you are missing out on plenty of insightful data which is going to help you make more informed decisions about your business.
Of course, you need a rear-vision mirror. You need to be able to see behind you because this is giving you valuable information to help you tackle the road ahead so you can get to your destination safely. Same with financial information, this is incredibly useful if provided in a timely manner and presented to you in a way that points out what you need to be looking at. Not everything is relevant and it’s important you don’t miss the points that are important.
At Your Finance Team, we focus on giving you timely and accurate financial information, so you can make better business decisions moving forward. You can expect timely, accurate and useful information that is delivered on a consistent basis so you’ve got all the information you need to make the decisions in your business.
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