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Do you have the right financial information to run and improve your business?

the right financial information

If you don’t have the right information to run your business then you’re fighting with one arm tied behind your back.

The right financial information should fit your business like a glove that’s tailor-made for you and when that’s what’s flowing through the business – reaching the right people in good time – then better decisions are made.


“It really gives you a clear picture of who’s doing what”

MD – global business

This quote was in relation to some reporting we helped with that shows the MD the past and future revenue being generated by each member of the sales team.

The building blocks of how we got there are set out below.

Profit cashflow growth

Accounting software and training

Some accounting software is better than others at generating reports. This is odd given that the single most important reason for doing bookkeeping in the first place is to measure and improve financial performance.

And the right software is no use if no one knows how to use it properly – training is essential!

In our view, QuickBooks is the best software for reporting by a long way but Xero has invested in this area of its product and has improved recently.

Chart of accounts (CoA)

Your chart of accounts is the DNA of your accounting. The accounts you include in your CoA will appear in your financial information – so give this plenty of thought.

Your chart of accounts is a list of all the different accounts you might want to use to classify the transactions you have, such as:

  • bank accounts
  • sales accounts for the different products / services you sell
  • expense items such as salaries, travel, advertising

If you’re unfamiliar with the role of the chart of accounts then take a look at the video in this blog to get sense of why it’s so important and how you build a CoA that’s future-proof and just right for your business.

Data entry

You can’t generate the right financial information to run your business if you don’t get the data entry right.

“Garbage In – Garbage Out”

Make sure that data entry is complete, accurate, up to date and that transactions are classified using your chart of accounts.

In one business we saw, the accountants had classified a large number of expenses to an account called “general expenses” so no one knew what the company had been spending its money on!

Here’s the story – You can have any expenses you want – so long as they’re Direct Expenses

The right financial information to run your business – we can help

Over the years, helping clients to produce the right financial information – that works for their business – has been a constant theme.

Too many bookkeepers and accountants concentrate on the data entry side of bookkeeping and don’t give nearly enough thought to the information that needs to come out of the other end.

We look through the other end of the telescope to start with.

Can we help you?

Give Michael Austin a call on 020 7125 0270 or email info@bluedotconsulting.co.uk for a confidential chat and let’s meet, free of charge, to look at the financial information you’re currently relying on and see if it can be improved.

Michael – @bluedotmichael

Related links:

Management information

You can have any expenses you want – so long as they’re Direct Expenses

What are management accounts and why are they useful?

© Blue Dot Consulting Limited

Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW

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MICHAEL AUSTIN

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