I have charted and tracked my weekly fees for my business since I started more than 10 years ago in June 2000. I have a very detailed Excel Spread sheet where I set my budgets per week, per month, per quarter, and for each year. I have also projected what I want from my business in terms of future revenue five years out from now at a growth rate of 25%. You cannot grow a business without such an obsession with the key drivers and metrics and accurate monitoring within your business. I know what drives my profit, my gross sales, and my cash flow, and I track these metrics every week. More importantly it allows me the great ability to implement certain actions within my business to improve on these results. To survive and grow and continue to compete in an ever expanding market place, no business owner, no matter how large or small they are or no matter what industry they are in, can run a business without knowing their numbers.
Plenty of clients tell me that I should know their numbers and that is why they go to an accountant. Unfortunately you cannot outsource or “pass the buck” by not owning and taking responsibilities for your own business results. If you are not monitoring your numbers every week, as a bare minimum within your business, then how do you have the ability to know what is wrong and to rectify it and more importantly how are you going to grow your business?
I know numbers can be boring, you need to read between the lines. I look at numbers but I see words instead. You need to do this with your business numbers. Your financial results are telling you a story, the story could be an exciting action adventure, or it could be a sad horror. Which story are your business numbers telling you?
I also benchmark my business to the top performing accounting firms nationally. It gives me targets to aim for because we want Snelleksz & Co. to be one of the best accounting practices in Australia. Are you also matching your own business performance to the best in your industry?