What are the bare bones of your business?
Whether your business has come to a complete halt, things have slowed down, or you’re buying less at this time, your monthly bank statement will be showing you the minimum costs your business is shelling out each month.
Have you noticed how your accounts are helping you to see the bare bones of your business?
I’ve been doing several monthly and quarterly management accounts for our clients lately and have found it very interesting to see a glimpse of the basic costs of each business. Our clients, business owners like you, are finding it incredible insightful too. Furthermore, as an accountant, whilst I look at my own accounts regularly, I have still found it fascinating to see the financial skeleton of our business.
How this saves you money!
Two weeks ago we shared how a client was able to save almost £500 when she examined her accounts in more detail, and we have seen other clients see how the bare bones are revealing direct debit payments for software they no longer use.
It’s also helped them to see how much extra they spend ‘normally’ and made them think twice about certain expenditure. Whilst I hope Covid-19 has not impacted your business too much, there is joy to be found in this silver lining that has lifted the lid on our expenditure.
We highly recommend you take advantage of this time, to look at your finances and see what you’re paying.
It also shows you opportunities
Looking at your finances, isn’t always about saving money. It can give you inspiration as well.
The bare bones can show you what clients need your services or products regularly, helping you to identify which clients to focus on when giving extra value, or what type of clients to speak to, if you wish to increase your client base.
Helen Monaghan
Chartered Management Accountant and Author of The Magical Mix of Money & Tax, Successful Business Minds, and 12 Steps to Improve Your Cashflow.
© HM Finance Coaching Ltd
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