What would happen if you were driving down the freeway and your speedometer wasn’t telling the truth? What if you were actually traveling faster than you thought? It wouldn’t be long before you had some blue lights flashing in your rearview mirror.
And what if your fuel gauge wasn’t quite right? You could be speeding along under the impression that you have plenty of gas to get you to your destination, only to hear some sputters and wheezes from your engine as you grind to a halt.
Whether you’re behind the wheel of a sports car, or running a business, accurate data is crucial. Here are 3 ways your business can become stuck due to inaccurate financial information.
1. You’ll Be Unable to Benchmark Performance
To put it simply, without accurate financials at your disposal, you cannot benchmark the performance of your business against your industry, your peers, or your own key performance indicators (KPIs).
When you are operating without any measurable KPIs or other business performance diagnostics, you are – to return briefly to our motoring analogy – essentially driving blind.
If your goal is to grow a healthy business so that you can enjoy a comfortable lifestyle for you and your family, then you need to know how your business is performing at any given time.
2. You’ll Receive Inconsistent Support & Advice
If you provide your CPA with inaccurate financial information and no real idea as to where your money is going then you’ll receive, at best, inconsistent support and advice. And at worst? No support and advice at all.
At Whittaker & Company, the first thing we do is take all your financials and give your business a health check. We have always been concerned with helping businesses grow and reach their potential. If a business isn’t healthy and making money, then why is it in business?
Our aim will be to get you, and keep you, on the road to success.
3. You’ll Find Trouble with Profits & Spending
The final issue with inaccurate financial information is the inability to properly plan for the future.
If you over calculate profits or under calculate spending based on the information you have, it can very quickly and very easily result in spending money your business doesn’t actually have.
Sometimes the realization that you’ve eaten into a budget that doesn’t exist will only arrive when the time comes to settle invoices with suppliers or pay your tax bill.
Accurate and up-to-date financial information not only allows you to make more informed decisions as you drive your business forward, it also allows you to steer clear of potential financial ruin.
Make Better Choices
You’d be surprised just how many business owners are coasting along without knowing for sure just how their company is performing. By working with Whittaker & Company, you can feel confident you are not jeopardizing the existence of your business, let alone its performance, by dealing in only the most up-to-date and accurate financial data.
If you’d like to speak to one of our advisors about arranging a financial health check for your business, contact us today.
Tax returns, financial statements, IRS communications and similar items are vital to address and process, but they should not be the focal point. Think of these as tasks to get to the real work, which is providing you the information you need and an interchange of ideas to move you forward. The goal is to help you implement your strategies and vision. This is what we do!