money management for small business Archives | Numbers Knowhow

Knowing Your Costs – The Key To Any Business

Mahmood Reza — Mon, 25 Sep 2023 10:46:37 +0000

Running a business means setting clear goals that you would like to achieve as a business owner. Whether that is to provide services or manufacture products, you must have a defined target and strive to reach it. Certainly, one of your goals should be making money i.e making a profit, since there is no future in a business that is repetitively not profitable. Focusing merely on the sales you are generating won’t give you the full picture. Hence, the way to success and money is through knowing your costs. In this blog, I am going to explain the different types of costs and how they behave in different circumstances. The importance of knowing your costs The sales that you make are not your profit in the business precisely because of the costs you have. Once the end customer has paid you for the product or service that you offer, the money you receive needs to cover the expenses that you encountered in the process of production. Now, these expenses are what I call costs. By knowing your costs, you will know what you are left with from the sales. In other words, you will know how much of your […]

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How To Be Financially Accountable

Mahmood Reza — Tue, 11 Apr 2023 09:03:35 +0000

Financial accountability is defined as being responsible for the way you use and manage your money. So, are you financially accountable? Or, maybe you’re finding it difficult? You’re not sure where to start, or you feel like you’re constantly falling behind. Don’t worry, you’re not alone! Being financially accountable There’s a reason why most businesses have accounting departments. Because being financially accountable is essential for success. But for small business owners and entrepreneurs, it can be challenging to stay on top of everything. In this week’s I Hate Numbers video, I look at reviewing your Financial Story Plan. You’ve heard the saying, “If you don’t know where you’re going, any road will get you there.” The same is true for your business finances. Not knowing your goals will result in you taking roads you never meant to take. Without a clear plan and goal in mind, it’s easy to lose track of your spending and make poor financial decisions. That’s why it’s important to review your Financial Story Plan regularly. Improving your financial accountability is a process that takes time and effort. Here are some tips that will get you started on the right foot. To summarise In this […]

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How To Judge Your Financial Performance

Mahmood Reza — Tue, 11 Apr 2023 08:59:07 +0000

How do you assess financial performance? It’s not that straightforward, isn’t it? Knowing how to judge your financial performance can be tricky. It’s because many factors come into play. Plus, it’s not always easy to know where you stand. You can get a good idea of how you’re doing if you turn to your numbers – more specifically, your income and expenses. Take a careful look at them, and it should be much clearer where your business is at the given time. In the words of Dietrich Bonhoeffer, “Action springs not from thought, but from a readiness for responsibility.” So, to be able to lead your company to a brighter tomorrow, you need to be informed about the facts, take responsibility for the current situation and plan away based on reasonable data. Care for some tips to get you started? Read on to learn more. Know your income and expenses If you’re running your own business, it’s important to keep on top of your financial performance so you can make sure you’re making a profit. But how do you know if you’re doing well or not? Here are a few tips on how to judge your financial performance. Regardless […]

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Benefits Of Cash Flow Management

Mahmood Reza — Thu, 07 Jul 2022 21:59:43 +0000

Cash is the lifeblood of your business, whatever stage you are at in your businesses. After all, cash is how your business services are sustained and without sufficient levels of money flowing in vs. money flowing out, you will not be able to expand your business, let alone sustain it. What is Cash Flow Management? Learning what good cash flow management is all about is one of the best things you can do for your business. But what is cash flow monitoring or management, anyway? Money (both in the form of cash and otherwise) coming into and going out of your business is cash flow. You’d always want to keep this positive as that will allow you to grow and expand, while also dealing with expenses and overheads. Why is Cash Flow Management important and what are the benefits? Good online cash flow management lets you accurately track where the cash comes from and where it goes. When done right, you get a complete picture of costs vs. revenue, ensuring that enough funds are left to pay the bills while still making a profit. There are many benefits of cash flow management, such as: Never run low Perhaps this may […]

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