11 July 2014

"Knowing Your Numbers" Article by Tina Zawila

At Sothertons, we are always reminding our clients that they need to know their numbers.  I'm not always confident that our message is heard, whether it's something they just expect an accountant to say/do, or that it doesn't really apply to them (non-nerdy-accountants)!

What I found interesting the other day, was the importance of knowing your numbers in another aspect of life - sport!  It provided a perfect analogy to make my point.  My daughter has recently started in the sport of weightlifting and her "numbers" are critical to set goals, to track her progress, and to measure herself against others and her own targets.  She carries a book in her gym bag in which she records diligently her numbers of every training session - the number of reps, the weights used etc.  She then sends her numbers electronically to her coach at the end of every week as an accountability measure and for him to determine any changes that should be made to continue to improve her performance.
So let's now apply this to your business or your financial position:
1.  Recording your numbers regularly in your own "book" - obviously these days there is powerful cloud accounting software (like Xero) that make this process so easy and enables you to do this everyday!  It will even allow you to compare your results instantly to targets/goals you have set for yourself (via your budget).
2.  Having an accountant or business adviser, your own "coach", to help monitor your progress and suggest areas of improvement.  Your accountant can measure your performance against that of others in your industry (benchmarking) and your previous results or key performance indicators (KPI's) to keep you focussed and on track.
So if it seems so obvious to do this for success in sport, why wouldn't you apply the same concepts to ensure success in business?  Do you know your numbers?  Do you have a business advisor (coach) to improve your performance and keep you accountable?
At Sothertons Gladstone we are passionate about numbers and business; call us on 4972 1300 today to arrange your first "training session" with us!

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