Understand Your Numbers

Our physical health is important to all of us, and we should always be diligent to look out for any early warning signs. If we suffer symptoms, we should consult a doctor and if the diagnosis is problematic, a solution should be prescribed and implemented.

In the same way, a business owner needs to be on the lookout for financial problems in the business. The sooner these problems are detected, the more likely a solution can be found and the problems resolved.

Financial Ratios

The indicators of financial problems are found in the numbers, which in accounting terms, are called “financial ratios.”

If you’ve ever been in the cockpit of a plane, you would have marvelled at all the gauges in front of the pilot. Every one of them tells the pilot whether the plane is operating properly and on-track. In a similar way, there are certain financial ratios that help a business owner know whether the business is operating properly and on-track.

If you’ve ever been in the cockpit of a plane, you would have marvelled at all the gauges in front of the pilot. Every one of them tells the pilot whether the plane is operating properly and on-track. In a similar way, there are certain financial ratios that help a business owner know whether the business is operating properly and on-track.

Ratios can help answer the following questions:

  • How profitable is the business?
  • How efficiently is the business generating sales, compared to control costs?
  • How much cash (liquidity) is available to run the business?
  • How much capital risk (leverage) is the business exposed to

In order to Understand your Numbers, we have a Financial Awareness Program

Financial Awareness Program – Outline and Benefits

Why we developed this service.

The better you understand your business, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. We have developed this service to enable business owners to fully understand and interpret their numbers, so they have a strong foundation on which to grow their business.

Who should attend?

We recommend this service to you if you are passionate about your business and want to better understand your numbers, so you can answer questions like:

  • How much profit have I made this year?
  • Why has my profit increased but I have no cash?
  • Why has my profit increased but I have no cash?
  • What is affecting my cash level?

What is involved?

Financial Awareness Coaching Program is a 12 month program. You will attend meetings with us every two months to discuss your financial results. The focus of each meeting will change and progress depending on your needs and objectives. You will

  • Develop an understanding of your key financial reports
  • Gain knowledge of key accounting concepts
  • Learn how to report on cashflow and profit
  • Understand how to better manage your debtors and creditors
  • Learn how to monitor income and expenses throughout the year
  • Find ways to save time on admin tasks that could be automated
  • Identify weaknesses / areas to work on between meetings to get better results
  • Iron out any existing errors (e.g. formats, coding, analysis, timing differences, etc.)
  • Understand what other information you should capture and how (e.g. stock, debtors, creditors, etc.)

When should I begin Financial Awareness Program?

Any time is a good time to improve your understanding of your financial reports in order to improve business performance. The sooner you start Financial Awareness Coaching Program, the better your understanding of financial results and their implications, and the more control you will have over outcomes.

Benefits of Financial Awareness Program

  • Enables you to better understand your business
  • Iron out any existing errors to ensure accuracy in your financial reports
  • Better manage and monitor your cashflow
  • Customise your reports to ensure you capture the right information
  • Format your reports in a way that makes decision making easier
  • Gain better understanding of the financial implications of decisions
  • Make better informed decisions
  • Access regular independent financial advice
  • Review your reports and record actions to be achieved before the next meeting
  • Be held accountable to achieve progress between meetings
  • Identify any burning issues that need to be addressed
  • Access the collective wisdom of our accountants, systems, products and services
  • Phone support to address any burning issues between meetings