When you get a Profit & Loss statement from your accountant or bookkeeper, do you find yourself scratching your head and thinking, “Good grief! What do all these numbers MEAN?”
If so, you aren’t alone. Chances are your accountant or bookkeeper prepares your financials with a primary purpose in mind, which is to ensure you have the records needed to complete your tax returns. And while having the records you need to support your tax filings is good, this raw data likely will not help you understand your business or provide you with the information you need to optimize your financial performance or plan for the future of your business.
Sure, you can continue to operate on “a wing and a prayer” basis. However, successful business owners understand that pertinent, timely information is a key component in the long-term success of their business. Good information can help owners understand the things that are going well and the things that can be done better to achieve a higher return on investment, understand which service lines or income streams are driving profit (or loss), understand whether increases in income are proportional to increases in costs, understand what business drivers they should focus on to increase profitability, and many other financial aspects that will make their business more successful.
You already have a tremendous amount of data locked within your business. The issue for business owners is this—how do you turn data into useful information that supports your day-to-day needs, as well as helps you plan strategically for the future of your business? The short answer is analytics. Analytics helps you understand the performance of your business now, so that you can better plan your future, whether that means your future product/service line strategy, pricing strategy, vendor strategy, capital investment strategy.
Visit our website (www.tbsi.consulting), then give us a call at 866-960-0428, Ext 702, to discuss how we can support your need for more useful, more meaningful information to grow, groom or get the most out of your business.