If you’ve been following the blog for a while you’ll have noticed that we write about real conversations we’ve been having with real business owners, and today’s entry is no different. When one person asks something chances are other people will find the answers helpful, so we see real value in sharing these things – do let us know what you think!
Accounts – the uncomfortable truth
There is a harsh reality in confronting your finances and we know it can be difficult – a bit like needing directions but not wanting to admit you’re lost! Perhaps you worry that shining a light on the figures will show just how little work you’ve been paid for, despite how “busy” you’ve been.
Or that brand new gadget you bought to revolutionise your business has not earned a penny of extra income. The analysis might show that you’ve spent hundreds, or even thousands, on coffees, business lunches and networking which has not created any new sales.
Worst case scenario – the accounts suggest your business isn’t viable, and you’ve used all your savings! To many, the uncomfortable truth is they are afraid of what the accounts will show, so they ignore them until they reach the submission deadline.
But the numbers don’t lie, whether you look at them or not!
In our experience it has proven far better to know the truth than to be lost in the unknown, because understanding your detailed financial performance can be really empowering. Here’s why;
The first step of any journey is to know where you are.
Think of a map; if you don’t know where you are right now, how will you set a course to reach your destination?
“So, is knowledge powerful?”
Yes, and no! Knowledge itself is not enough. Using that knowledge to make informed decisions is where the real power lies.
If you know where you are, you can use that knowledge to set benchmarks, build targets and evaluate progress over time.
Think of the map again. Knowing exactly where you are provides you with valuable information to plan your journey to your target destination.
“How can Kung Fu Accounting help?”
Most traditional accountants tend to look exclusively at the historic results in the rear-view mirror. Far more important is what’s ahead of you – the path you need to travel to reach your destination.
Sending in the returns each year is only a tiny part of what Kung Fu Accounting does – crucial of course, but other than keeping you legal it adds no value to your business. We take care of it, but we don’t focus on it, and neither should you.
“What does that mean?”
We will help you face the uncomfortable truths you might have been avoiding.
First, we’ll tell you exactly where your business is so you can plan your steps in the right direction to achieve your goals. If you don’t yet have a clear destination in mind we can help you identify that too.
Then as you work towards your goals we’ll help you monitor and review progress, offering expert guidance and support to keep you on track.
Meanwhile, in the background we’ll take care of all the submissions and admin so you won’t have to worry about it. You’ll be free to focus on what you do best!