What are the top crucial numbers every business owner needs to know?

At JPB Accounting we just love helping business owners to learn more about their numbers. Why? Because when a business owner understands their numbers they can plan for the future and make better business decisions. Having clarity of your finances means you're able to grow your business and make it a real success.

As a business owner you’re probably inundated with all types of numbers and really don’t understand which ones are important. That’s why we’ve put a free guide together for you which you can download here.

The guide will talk you through our 7 crucial numbers in order to scale your business. 

Sales

I suspect that if nothing else, sales is something you do check in with from month to month and this can be a great place to start when it comes to tracking business performance.

So you’re tracking sales, great. But how do you improve this figure?

Once you have the numbers in front of you, there are opportunities to explore.

Profit margins

You may have heard the terms gross and net profit margins but do you really understand what they mean? In our guide we’ll talk you through the various profit margins and how you can improve them

Stock

Stock management is essential for any business that sells physical products. Poor stock management can lead to lost sales, stock shortages, and cash flow issues. We’ll explore how you can get back in control of your stock management.

Breakeven

Your breakeven point tells you how much revenue you need to generate to cover your costs and start making a profit.

The lower your breakeven point, the more comfortable you can feel in running your business, we’ll tell you how!

Cash flow

Poor cash flow is one of the main contributing factors to business failure. You may think because you’re making a profit your business is nice and healthy but you’d be mistaken to think this. If you have points during the month where cash flow is low then there may be ways to improve it. If you don’t it could mean you end up in your overdraft or having to get loans. Keeping out of the red is critical for any business.

Financial goals

Without these goals, it's like driving without a destination in mind. You might be moving forward, but you're not sure if you're headed in the right direction. So, let's dive into how you can set effective financial goals that will help you steer your business towards success.

Goal setting is overlooked by more business owners than you might expect, you’ll know how easy it is to get wrapped up in the day to day aspects of running a business, and we need to take the time to set financial goals in business if we want to commit to a direction. In our guide we’ll give you some tips on goal setting.

Staff costs

It’s great that you’ve got a team behind you to support you but you’ll need to review how much you're spending on staff each month. Having this clear view of the full cost of your employees helps you make decisions about your resourcing needs.

If you’re looking for some guidance on your numbers then download our guide today.

If you’re thinking that you might need to outsource your finance function in order to take your business to the next level then I’d love to have a chat with you.