This is the third element of the Elevate Profit service which provides the actionable numbers we promised. The Banking Budget sheet provides you with the 7 key numbers you need to effectively make confident decisions in your business. Instead of analysing what seems like a list of 100’s of things before making a business decision, we do the majority of that for you and provide you with the 7 most important figures that are all you need to be confident in your decisions.
You get live access to the Banking Budget sheet which gives you these numbers at any point you want to refer to them. It allows you to see an instant snapshot of the financial health of your company, see if you are overspending in any specific area and enables you to make a change to that fact before you see it on your end of year accounts - which by then may be too late. By using these 7 numbers, you can get ahead of any overspending and ensure it doesn’t ruin your bottom line.
When making business decisions, these numbers act as a reference for you. If you are planning to buy an asset, these figures will help you decide if you are able to do this without harming the cashflow and profitability of the company. Thinking of hiring extra staff? The numbers will let you know if that’s a sensible option. How much money should you be paying yourself this month? You don’t need advanced accounting methods to know these things, you need simple analysis boiling down all your financial data into simple, actionable numbers. And that’s what we provide.
By breaking your cash balance down into 7 numbers rather than having them all combined into a single balance, you avoid making yourself vulnerable to something known as ‘Parkinson’s Law’. This law dictates that “work expands to fill the time allotted” - which I’m sure you’ve experienced - but this also applies to cash. You will spend cash in accordance with what you have available. If you have a whole bank balance to look at, the chances are that you will end up spending the whole amount. By breaking this balance into the seven numbers, it controls and categorises spending so that the whole amount doesn’t get sunk into places it doesn’t need to go!
That’s it… 7 numbers is all you need. As an Elevate Profit client, we combine tech and great financial analysis to provide you with everything you need to make confident business decisions at any point during the working day.
Part 4. Your dedicated financial analyst
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