In my experience, many business owners focus their attention on the Profit and Loss (P & L) Statement when considering their plan. “As long as I am making a profit everything will then fall into place.” they say. Not so …. Most small business owners who are not usually trained in accounting do not understand the importance… Read More »
If your accounting system has been around for a while, you will have many general ledger accounts. New accounts were created when you needed to watch a particular expense for a period of time or your bookkeeper created a new account to allocate an unknown expense when you were overseas that time. It has stayed… Read More »
Why financial planning is not a waste of time. People say to me that they cannot predict the financial outcome of their business and therefore spending time doing a budget forecast is a waste of precious time. The forecast never works they say. This is an outdated view. Given the right tools and consistency of… Read More »
It is the end of the financial year. It is time to turn your mind to next year and onwards. As a business consultant I hear business owners say “Why should I sit down and do a budget? I can never predict the future. It is a waste of time!”. Think about that statement. The… Read More »
Whilst how best to control a business is a complex issue and people write papers or even whole books on the topic, this post explores some of the main characteristics of a business that is in control. The final measure of success is that the business can consistently trade profitably. You cannot get around the fact that… Read More »