{"id":1288,"date":"2022-10-13T13:42:01","date_gmt":"2022-10-13T12:42:01","guid":{"rendered":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1288"},"modified":"2022-10-13T13:42:02","modified_gmt":"2022-10-13T12:42:02","slug":"financial-reports","status":"publish","type":"post","link":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1288","title":{"rendered":"Key numbers to focus on in your business now"},"content":{"rendered":"\n<p>As a business owner, it\u2019s never been more important to have a good grasp on your finances.&nbsp;<\/p>\n\n\n\n<p>For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable business model.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-1024x683.jpg\" alt=\"business finances\" class=\"wp-image-1289\" srcset=\"https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-1024x683.jpg 1024w, https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-300x200.jpg 300w, https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-768x512.jpg 768w, https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-750x500.jpg 750w, https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye-1140x760.jpg 1140w, https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2022\/10\/eye.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>To track, monitor and drive your financial performance in this new business world, it\u2019s increasingly important to have a handle on your key financial reports and metrics.<\/p>\n\n\n\n<p><strong>Getting to grips with your financial reports<\/strong><\/p>\n\n\n\n<p>Whereas in the past, extra cash in the business may have been seen as a surplus that needed to be spent on something, recent years have shown us that having these reserves is vitally important for the survival and long-term health of businesses.&nbsp;<\/p>\n\n\n\n<p>To truly be in control of this cash, it\u2019s vital that you can dip into your accounts, financial reports and dashboards and \u2018see the genuine story\u2019 behind your financial position.<\/p>\n\n\n\n<p>So, what are the key reports to focus on? Let\u2019s take a look:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Budget<\/strong>&nbsp;\u2013 your budget is the financial plan that&#8217;s tied in with your strategic plan. In essence, the budget is your approximation of the money it will take to attain your key strategic goals, and the revenue (income) and profits you hope to make during this period. It\u2019s a benchmark you can use to measure your actuals (historic numbers) against, allowing you to see the variances, gaps and missed targets over a given period.<\/li><li><strong>Cashflow Statement<\/strong>&nbsp;\u2013 a cashflow statement shows the flow of money into and out of your business. Understanding these cash inflows and outflows in detail allows you to manage this ongoing process, allowing you to aim for a \u2018positive cashflow position\u2019 \u2013 where inflows outweigh outflows. In this ideal positive scenario, you have enough liquid cash in the business to cover your costs, fund your operations and generate a profit.&nbsp;<\/li><li><strong>Cashflow Forecast<\/strong>&nbsp;\u2013 forecasting allows you to take your historic cash numbers and project them forward in time. As such, you can see where the cashflow holes may appear weeks, or even months, in advance \u2013 and that gives you time to take action, whether it\u2019s increasing your income stream, reducing your underlying costs, chasing up unpaid invoices (aged debt) or going to lenders for additional funding.<\/li><li><strong>Balance Sheet<\/strong>&nbsp;\u2013 the balance sheet shows you the company\u2019s assets, liabilities and equity at a given point in time. In a nutshell, it\u2019s a snapshot of what the business owns (your assets), what you owe to other people (your liabilities) and what money and profits you currently have invested in the company (your equity). The balance sheet is useful for seeing what stock and equipment the business owns, how much debt (liabilities) you\u2019ve worked up and what the company is actually worth \u2013 all incredibly useful information to have at your fingertips when making big business decisions.&nbsp;<\/li><li><strong>Profit &amp; Loss<\/strong>&nbsp;\u2013 your profit and loss report (P&amp;L) Your P&amp;L gives you an overview of the company\u2019s revenues, costs and expenses over a given historic period of time. Whereas the balance sheet is a snapshot, your P&amp;L is more like a moving video. It shows you how your finances are progressing by demonstrating how revenue is coming in and costs\/expenses are going out (rather than cash coming in and going out, as you see in your cashflow statement and cashflow forecasts).<\/li><\/ul>\n\n\n\n<p><strong>Talk to us about accounting and financial reporting for your business<\/strong><\/p>\n\n\n\n<p>We\u2019ll run you through the key reports in your accounting software, and can help you track performance, take action and prepare your company for surviving the new business normal. <a href=\"https:\/\/accountants247glasgowsouth.co.uk\/contact-us\/\">Contact<\/a> our South Glasgow team today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a business owner, it\u2019s never been more important to have a good grasp on your finances.&nbsp; For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable business model. To track, monitor and drive your financial performance in this new [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","post_reading_time_wpm":"300","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo":"","sponsored_post_desc":""},"jnews_primary_category":{"id":"58"},"footnotes":""},"categories":[58],"tags":[],"class_list":["post-1288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Key numbers to focus on in your business now<\/title>\n<meta name=\"description\" content=\"What are the key reports to focus on in your business? 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