What is it about the words ‘financial figures’ or ‘company figures’ that puts everyone into a panic? The minute you hear big words like financial statements, profit and loss and income statement, everyone goes into overdrive mode and disappears from the board room! What you need to remember is that these little titles tell the ‘financial story’ of your business over a certain period of time. It’s an account of your business dealings over the last 12 months set out in a financially acceptable way so that people the world over can understand the figures.
The balance sheet is really a picture of the financial position of the company at this point in time, showing what you own as Assets, and what you owe as Liabilities, whereas the cash flow statement shows what cash has come into and gone out of the business. The income statement show what fees have been received and what fees have been paid.
It is always helpful to have a business coach to help you make sense of your financial statements if you battle with trying to separate the wood from the trees. Not everybody can look at a page of figures, look up and say, ‘yes, I understand….” . You have to be able to analyse the numbers on the paper and relate them to rand’s and cents and then you will be getting somewhere.
For a lot of businesses, their financial year will be coming to an end as of 31 March 2017. So many a business consultant will be in demand at this time of the year to assist with getting the figures finalised and with interpreting the figures for the new financial year. In addition, most consultants will be helping with planning the direction a company should take in their new year.
For more information about business coaching and business consulting services, contact me: 083 256-0378 | This email address is being protected from spambots. You need JavaScript enabled to view it.
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