Is Your Business Money-Smart? The Numbers That Really Matter

Running a business is exciting, but let’s face it – keeping on top of your finances can feel overwhelming at times. Don’t worry, though! You don’t need to be a financial whiz to understand the key numbers that can help your business thrive. Let’s break it down into simple, actionable insights.

Show Me the Money: Cash Flow Basics

Think of cash flow as the lifeblood of your business – what’s coming in versus what’s going out. It’s simple: if you’ve got more money coming in than going out, that’s positive cash flow (yay!).

But here’s the thing: even profitable businesses can struggle if cash isn’t available at the right time. That’s why regularly checking your cash flow is so important – it helps you plan ahead and avoid any sticky situations.

Getting Paid On Time: Your Secret Weapon

Here’s a common frustration: you’ve done the work, sent the invoices, but payments are delayed. These delays – or ‘debtor days’ – can make it harder to pay your own bills and keep things running smoothly.

A good system can make all the difference. At FJH Bookkeeping Services, we help businesses set up tools like automated reminders and clear payment terms to get paid faster. Because let’s be honest, you deserve to be paid on time for your hard work!

Profit: The Real Story

Everyone talks about profit, but what really matters is your profit margin – how much you actually keep from each pound you earn. For example, if you make £100 from a sale and keep £20 after covering costs, that’s a 20% profit margin.

Different industries have different benchmarks for profit margins. We can help you understand how your business stacks up and where you might make improvements.

Making Your Numbers Work for You

Here’s a simple way to stay on top of your finances:

• Weekly: Check your cash flow

• Monthly: Review how quickly you’re getting paid

• Quarterly: Look at your profit margins

Small, consistent habits like these can make a big difference over time.

Small Changes, Big Impact

Sometimes, even minor tweaks can have a huge impact. Maybe you notice customers are taking longer to pay, or your profit margins are shrinking because costs are creeping up. Spotting these trends early means you can take action before they become bigger issues.

Need Help Making Sense of Your Numbers?

At FJH Bookkeeping Services, we specialise in making business finances less stressful and more useful. We help business owners like you understand their numbers in plain English – no jargon, no fuss.

Ready to take control of your business finances? Let’s chat about how we can help you make smarter money decisions for your business.  You can contact Emmie on 07752 368 726, or email us at info@fjhbookkeepingservices.com, or book directly through our Calendly link: https://calendly.com/bookwithfjh/discoverycall.