Do you know your numbers?

23 June 2016

Starting a business from scratch involves a lot of dedicated time and an enormous amount of energy. Over the last 25 years I have advised and supported thousands of businesses, so understand the challenges you face.

If you run a small business enterprise, many of the important business decisions are left to you which can create significant pressures and concerns.

I remember having a meeting with a client who owned a recruitment consultancy business.  The client, Tom, was in his early 30s and full of enthusiasm and ambition. Tom explained to me that he had some great people working with him and that he wanted to give them more responsibility within the business, but was concerned that the business cash flow would be greatly affected if he increased employee salaries. However, Tom was also concerned that if he didn’t reward and promote the best people they would be head hunted by competitors so he contacted me to arrange a meeting to discuss his predicaments.

The following day, I walked Tom through segment by segment of his business financial report. We were able to identify the areas that were generating the most revenue and the areas that were costing the most. This allowed us to clearly see the company’s financial position.

These numbers gave Tom the insight and confidence to make an informed decision on how to increase employee salaries in the most efficient way, whilst allowing him the peace of mind that his business would be ok.

If you are thinking about making some changes within your business and would like advice from a firm of accountants that think outside the box and never use the one fits all approach, then contact Glenn Thomas via email at: glenn.thomas@uhybirmingham.co.uk .