Don’t Worry: Take Control of Your Numbers: Plan, Control and Decide
Maintaining and growing your business
This requires many things coming together, such as customer satisfaction, gaining clients, good products and services, motivated workforce, good relations with suppliers etc.
An area often neglected is being able to take control of your business numbers and implement three key ingredients of managing your business, Planning, Control and Decision Making (PCD).
A plan is essentially your future business activity expressed in numbers. Control is about understanding and managing our income, costs and profitability. Decision making involves interpreting and taking action based on what our financial information tells us.
Good PCD requires good efficient and effective business engines, Online or Cloud accounting is the appropriate business engine to use, and with the introduction of Making Tax Digital, Online Accounting systems have a greater relevance.
Online systems – Take Control of Your Numbers
Online systems let you to process information more efficiently, effectively and accurately. There is better real-time overview of the financial performance of your business and its financial position. There is also access for multiple users which allows easy conversations and collaboration with members of your team and advisors
Evaluating your business performance is best done by comparison to some benchmark, plan or expectation. How well are we doing and the idea of measurement is not unique to the business world, for example when buying a car, we will evaluate its desirability and value for money against other cars.
Looking at our business performance helps us answer the following questions
• How are doing overall and in detail?
• What are the strengths and weaknesses of our business?
• How will the business perform in the future?
• What management actions are needed?
PCD does not require a major financial investment, knowing and understanding how to use information that is already present can produce benefits.
There are many online systems out there, and were we to express a preference then Xero is our recommended system
Pro Active Resolutions- Your Accounting Solution and Business Friend