DO YOU KNOW YOUR BUSINESS NUMBERS??

 

Every transaction in Business involves numbers.  Whether you are buying or selling, numbers are important.

In manufacturing, numbers tell you the cost of each unit of goods produced.  In the service business, you need numbers to determine your charge out rate.

Business numbers show you how much you have put into your business (capital), how much you have made (profit), and how much you have taken out (drawings).

Business numbers help you know whether sales are increasing or declining.  Business numbers help you understand the difference between your cash in bank and the profit made.

Business numbers forms the basis for tracking and comparing transactions such as monthly, quarterly and annual sales; inflow and outflow from inception of business, etc.

The importance of business numbers cannot be over emphasized.

‘A business that does not know its numbers is weak.  It cannot access its growth; neither can it make projections to further grow its activities.’  This is a major reason why many businesses fail, because business owners do not understand their business numbers.

Understanding your business numbers is easy.

Let us help you know and understand your BUSINESS NUMBERS. Find contact details below.

Your friend and Financial advisor

Ehis Egbuji.

(Nigeria's Small Business Accountant)
ehisegbuji@gmail.com

**photo credit – enpnetwork.com

REASONS WHY YOU SHOULD KNOW & REPORT YOUR BUSINESS PERFORMANCE

 Reporting your business performance is known as Financial Reporting (F.R).  It means presenting your business performance in a report format for a given period, usually one year. 

 

 
PROFIT OR LOSS

The report shows whether your business made a profit or loss.  It shows your cash position, your assets and liabilities.  It usually follows a standard format and is prepared by a Finance Expert/Accountant.

 

FINANCIAL INTEGRITY

It can be scary to present your business information to the Government/public, but it will help build financial integrity for you and your business which you will need when dealing with banks, financial sponsors, potential investors, shareholders and bigger clients.

 

GOVERNMENT’s ECONOMIC DECISIONS

Your business financial reports helps the Government in making economic decisions that affect businesses.  For example, making funds accessible to small & medium scale businesses; increasing or reducing business taxes, etc.

International organisations like the International Monetary Fund (IMF) also use financial reports to monitor growth & development in countries.

 

DELISTING OF BUSINESS NAME

It is important that every business owner has a basic understanding of the Financial Reporting requirements for businesses.  Businesses that do not report their financial performance stand the risk of being delisted from the Companies’ Register.  This means your business ceases to exist as a legal entity.

 

If you haven’t been reporting your business performance, contact us or a finance expert  today.  Don’t allow your business to get delisted or lose financial integrity.

 

 

‘ Success is - little steps of deliberate actions’ – anonymous

 

We remain passionate about your business success!

 

CONTACT US TODAY!

e-mail: ehisegbuji@gmail.com

twitter: @ehisbebe

Phone no: 08091001173

Lagos, Nigeria.

 

photo credit - shutterstock.com