As a business owner, it’s always been helpful to have an understanding of accounting – but after the lock-down world, it’s never been more important to have a good grasp on your finances.
With the business world irreparably changed by the impact of corona-virus, your business is facing a ‘new normal’. Priorities have changed, customer behaviors have mutated and revenue streams have had to evolve and pivot in order to create a viable post-lockdown business model.
To track, monitor and drive your financial performance in this new business world, it’s increasingly important to have a handle on your key financial reports and metrics.
Getting to grips with your financial reports
Although in the past, extra cash in the business may have been an extra need to be spent on something, COVID-19 has shown us that having these reserves is vitally important for the survival and long-term health of businesses.
To truly be in control of this cash, it’s vital that you can dip into your accounts, financial reports and dashboards and ‘see the genuine story’ behind your financial position.
So, what are the key reports to focus on? Let’s find out:
Budget – your budget is the financial plan that’s tied in with your strategic plan.
Cashflow Statement – a cash-flow statement shows the flow of money into and out of your business.
Cashflow Forecast – forecasting allows you to take your historic cash numbers and project them forward in time.
Balance Sheet – the balance sheet shows you the company’s assets, liabilities and equity at a given point in time.
Profit & Loss – your profit and loss report. It gives you an overview of the company’s revenues, costs and expenses over a given historic period of time.
Talk to us about accounting and financial reporting for your business
We’ll run you through the key reports in your accounting software, and can help you track performance, take action and prepare
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