What Does 'Knowing Your Numbers' Really Mean?

Prosperity on the Horizon

Welcome to Episode #21 of Prosperity on the Horizon!

The common belief that understanding financial metrics and reports is solely the responsibility of financial professionals is a myth that needs debunking. Many business owners think, "I don’t need to know the numbers, my accountant and my bookkeeper will deal with those numbers and they will tell me how much tax I need to pay." However, this mindset can be detrimental, disconnecting owners from crucial information about their business's performance and limiting their ability to make informed decisions.

Every business owner, irrespective of their background, should actively engage with their company's financial management. This means getting familiar with key financial metrics such as revenue, expenses, profit margins, and cash flow. By understanding these numbers and regularly reviewing financial reports, owners can make informed decisions, spot potential risks early, and drive sustainable growth.

Knowing your numbers in business is akin to having a roadmap for success. It involves keeping financial records up-to-date, understanding key metrics, and regularly tracking performance. Metrics like revenue, expenses, profit margins, cash flow, and customer acquisition costs provide insights into different aspects of your business and help you identify areas for improvement.

Implementing strategies such as tracking expenses, setting realistic budgets, monitoring cash flow, controlling inventory, reducing overhead costs, increasing revenue streams, investing wisely, and regularly reviewing financial reports can strengthen the financial health of your business.

In summary, knowing your numbers, budgeting, and forecasting cash flow are essential practices for any business. They provide clarity and control over finances, enabling informed decision-making and effective navigation of challenges. By staying on top of your numbers, businesses can drive sustainable growth and success.

Announcement:

The doors are still open, join us inside The Prosperity Society Membership and take the first step towards financial freedom and prosperity. Our Founding Membership fee is less than $1 a day, making it accessible to all.

Don't miss this opportunity to transform your relationship with money and build the business of your dreams!

Stay tuned for upcoming episodes where we further explore the world of numbers and the stories they tell.

If you are listening to this podcast, chances are you are already on your way to exploring your numbers with a desire to understand and master your business finances, realising the transformative power that numbers hold for your business success.

To help you on your journey of building a thriving business with healthy cash flow, I’ve published a podcast series (Episodes 1-8) to highlight the biggest mistakes that prevent businesses from succeeding. To assist you in maintaining a healthy cash flow in your business, I walk you through The 7 Deadly Cash Flow Sins and give you tips and strategies on how to overcome them.

You can grab a free copy of my e-book ‘The Seven Deadly Cash Flow Sins’ right here, right now.

You can also subscribe to our ‘Prosperity Playbook Bulletin’ to get notified when a new podcast episode is released, and of course you will get a lot more value out of it.

Complete our FREE ‘Business Health Check’ form to give you insights into where you’re strong or weak in your business, where there are opportunities to improve, how your business is performing in terms of profitability, cash and time.

Where to find us:

Available on all major podcast platforms: Apple Podcasts, Spotify, Google Podcasts and Amazon.

Subscribe on your favourite podcast app to stay in the loop with every insightful episode.

If you’d like to find out more about Julianna and her business, visit www.horizonaccounts.com.au or follow her on LinkedIn and Instagram @horizonaccounts or book a free 30 minute Business Diagnostic Review Call.