Numbers are all around us. Yet for some of us they can seem quite scary. I have always felt that I am on the ‘numerically challenged’ side of the camp. Although this is probably much more to do with the parrot on my shoulder telling me this.
Its true that I always take a deep breath when looking at figures – mainly to calm my mind. I expect that some of those homeschooling at the moment may be feeling a bit out of their depth by how maths is currently taught. And also trying to remember how to solve the problems in the first place.
January is traditionally a time accountants dread as people suddenly realise the tax return deadline is upon them. They may gather the data themselves and then hand it over to their accountant or tax specialist. Or they may just hand over the data (a spreadsheet possibly and the dreaded bag of receipts). Once the tax return is done, and the tax to pay known, there is a big sigh of relief. And then it is forgotten until the following January.
But if you are a sole trader this information can be really helpful to you. It can help identify your biggest costs, or your best selling product.
A client of mine recently brought up the fact that she doesn’t know why her business isn’t making money. It turns out that she has never taken a good look at her income or expenses. After a couple of hours of data gathering and sorting we had a clear picture. We could easily see her best selling products and what her biggest expenses are.
This was a revelation to her. She could now see her business in a completely different light. We have put in place a simple spreadsheet to update so she can now track her business finance more easily. She was so taken with it she is going to do the same with her personal finances.
So it turns out that income and expenditure isn’t just for your tax return. It is something you can use all year round to help guide business decisions. And being on top of them will cheer your accountant up as there will be no more last minute tax return rush.
If you need help being accountable for your business get in contact for a free, no obligation chat.