10 Benefits To Knowing Your Numbers In Business

At Cube Accounting we always emphasise the importance of knowing your numbers. It may seem an obvious point for accountants to make, but you would be surprised at just how many businesses do not have control of their numbers or have this knowledge readily to hand. 

Image Credit: Mirror Newspaper Online

Recently on the last series of The Apprentice, Lord Sugar was shocked that Phil Turner, one of the finalists hadn’t seen a copy of his business management accounts for more than six months. He wasn’t chosen as his business partner and so could ‘not knowing his numbers’ play a key part in Lord Sugar’s decision? We will let you decide. 

There are so many benefits to knowing your numbers, here are our top ten.   

Informed decisions

If you know your numbers you will be in a better position for making decisions and you will be making them on the basis of fact, not fiction. 

You can see how healthy your cashflow is and address any potential hiccups early.

Knowing your numbers will enable you to spot any shortfalls in your cashflow and you will be able to react ahead of time to address them. 

Makes planning and budgeting much easier

When planning and budgeting your time will be much better spent when you are working with accurate information and not second guessing your financial situation. 

Can be motivating 

If you know your numbers, it can be quite motivating when you are working to goals or looking to improve on previous trading figures etc. This can also motivate your team if you employ staff too, especially is there is a reward / incentive programme in place!

Less likely to miss expenses etc when doing little and often

How sure can you be that you never miss any expenses with your business? Could you be losing receipts or missing out on claiming mileage? Could you be paying more tax than you need to? 

Easier for compliance and being able to submit accounts promptly

Keeping up to date with financial paperwork will enable you to submit your accounts on a timely basis. 

Save for larger payments if you know they are due e.g. tax liability

When you submit your accounts promptly, you will have more time to gather any tax liability that may be due and adjust your payment on account if relevant too.

Helpful if need to attract funding or lending

Knowing your numbers will allow you to respond to commercial opportunities more quickly and attract funding or lending if necessary too.

Highlight strengths and weaknesses, areas for improvement

If you know your numbers it will allow you to play to your strengths and enable you to address any weaknesses that become apparent. 

Confidence 

When you know your numbers it most definitely feels good and provides you with an air of  confidence. 

There are so many more reasons as to why you need to know your numbers in business, and this is by no means an exhaustive list. If you would like some help in being able to get a better understanding of your numbers, get in touch and we can have a chat. We are not here to judge, but to simply to provide you with a great service and for you to benefit from the knowledge and expertise we can provide. 

Contact details: email us at accounts@cubeaccounting.co.uk or call us on 01788 815017