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5 Reasons You Need to Understand Your Accounts

As a food or drink business owner, it is vital that you understand and take control of your business’ finances, however, this can sometimes be daunting and confusing if you’ve never had any finance training, and isn’t that what you pay your accountant for?

There are several reasons why a food or drink business owner should learn to understand their accounts better:

  1. Financial Control: Understanding your accounts enables you to have greater financial control over your business. You can keep track of your income and expenses, monitor your cash flow, and make better decisions on where to allocate your resources

  2. Identify Opportunities and Challenges: By reviewing your accounts, you can identify areas where you are performing well and areas that need improvement. This allows you to take action to capitalize on opportunities and address any challenges.

  3. Plan for the Future: Understanding your accounts helps you to plan for the future of your business. You can use financial data to set budgets, forecast sales, and make informed decisions about investments in your business.

  4. Tax Compliance: As a business owner, it is your responsibility to comply with tax laws and regulations. Understanding your accounts helps you to accurately prepare your tax returns and avoid costly penalties.

  5. Financial Reporting: Having a good understanding of your accounts enables you to prepare financial reports, such as profit and loss statements and balance sheets, which are important for communicating the financial performance of your business to stakeholders, such as investors and lenders.

If you’re interested in learning more, our webinar series ‘How Do I Get Better Financial Control of My Business?’ aims to explain in plain English how to use your accounting data to your advantage in managing your business and making key decisions, something that your accountant is not paid to do!

“…good speakers explaining things clearly. I got a lot of useful information out of the session - things I wasn't aware of (accruals / prepayments / depreciation etc) all things that will help us get the weekly / monthly reports right going forward” webinar attendee

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