Knowing your numbers
You’ve set up your business, you’ve succeeded in growing your start up and you are now creating a team to take your business into the next stage of its development. You need to know your numbers.
If you use Efficient Modern Accounting (please link to that page) then it should be fairly straightforward to create monthly management accounts. These will help you understand how much money you are making, what costs you are incurring and track your progress over time. Useful information.
In every business there are one or two statistics that drive the profits. For The Accountancy People, we have pretty much a fixed cost base so the key to our profitability is the revenue we generate each month. Your business will have one or two numbers that really matter. Our job as your accountant is to help you work out what is important and help you measure it.
Profit for you. As the business owner THE key number is the money you can take out for your family after the tax man has reaped his grim harvest. The problem is that in order to keep our taxes half way reasonable we tend to extract these funds in a numbers of ways, salaries, dividends, pensions, loan repayments……and so, understanding what you earn and if you are earning enough to keep your family’s finances going becomes tricky. We can help you know what profit you need bearing in mind your tax bill, retaining profit for growth and the convoluted way you extract funds.