Numbers should tell a story

Money is a tricky topic for a lot of business owners

There’s the matter of how to account for it, how to present it and, of course, how to raise it. 

In this day and age where accounting has been made a lot easier and financial information more transparent, how should business owners approach their numbers? 

Here are some things we figured out:

Numbers should tell a story 

Proper accounting is more than just compliance. It’s an opportunity to paint a picture of your business – where its strength and opportunities lie, as well as its risks and challenges which, in turn, can help business owners make better decisions. 

But accounting is a technical skill and not all business owners are necessarily savvy in this field. This is where a good bookkeeper can come in. 

More small and medium-sized businesses are leveraging accounting solutions like Xero to get yesterday’s data. Back in the day, this was an accountant’s job. It would take days to collect information from a client and the bank before they could present the numbers. But because cloud accounting solutions do all this already, we bookkeepers get to take more of a role as advisors, reading and interpreting the numbers into actionable advice

This is important because business owners don’t always think about this. They see positive numbers and think they’re doing well, so no need to bother checking what’s under the hood, right? 

We knew one business in particular that didn’t realise 82-83% of their revenue was coming from one customer. They knew it in their heads, but didn’t have a concrete number for it. When their relationship with that customer soured, they had to scramble to get back on their feet. 

Had a bookkeeper stepped in to provide advice beforehand, whether that was to take care of that customer or to focus their efforts into acquiring other big customers, the business wouldn’t have had to rely on a single major source of revenue. 

Back then, many business owners saw bookkeepers and accountants solely as the people who could help them pay less tax and comply with the law. But now, thanks to new solutions and emerging technologies, we get to be so much more than that.

Having worked with plenty of businesses over the years, we’ve noticed how the approach to their numbers varies. Some don’t prioritise accounting and financial transparency, while others inflate the importance of fundraising to a disproportionate degree. 

Learning to use and understand the powerful reports inside Xero are critical to the overall success of your small business. The management team at Notch Above are able to work with you to customise advanced Xero financial reports, while identify strategies to increase your cash flow or setup your annual budget. Read more here or call us on 07 3355 6427.

Source Xero


Author Info

Notch Above

We love to put energy and passion back into life by taking away the bookwork drag. With the help of smart systemised bookkeeping systems life can become easier. Notch Above Bookkeeping was founded in 2006 after Jac Gallagher saw the need for small businesses to have access to accurately prepared and up to date financials, enabling owners to make informed financial decisions on their business in a timely manner. Notch Above is a Xero Platinum Partner based in Brisbane QLD servicing business owners and accounting businesses.

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