I believe the struggle they face comes down to five main reasons….
1. Not really understanding the critical numbers of your business.
It’s by far the most common struggle I see. So many of us get into business because we are great at what we do.
Once you’re into your business, you realise the need to know how to do so many other things. From marketing to bookkeeping, social media to sales (need I go on?); it all becomes too much and so we never really get a handle on what our business numbers mean and how much they can tell us about the health of our business.
2. You’ve got an accounting program, but you’re not exactly efficient in it.
This is another common one. What I often see is this: as a business owner, you get an accountant. That accountant recommends you get an accounting system (Xero or MYOB or QuickBooks). So you do.
Maybe your accountant or bookkeeper even sets it up for you. They hand it over and wish you luck. You know how to raise an invoice (great start by the way) and you can confirm when you get paid. Everything else though is probably all a bit like double dutch. Which leads to the next struggle…
3. You thought your bookkeeper or accountant was taking care of it.
As my Mum used to say, “If I had a nickel for every time someone thought that I’d be rich” (I grew up in Canada by the way, hence the nickel reference).
Unless you have an accountant or bookkeeper in the family, chances are they aren’t taking care of it, and by the time you figure that out things are already headed down the wrong path.
4. You thought the reports you were getting from your accounting system were meaningful.
I hate to be the bearer of bad news, but usually the reports that are set up are cookie-cutter reports, and I'm guessing your business probably isn't selling cookie cutters.
5. You don’t understand the reports you are getting.
It’s all well and good to be getting a bunch of reports. It all looks like pages of meaningless numbers.
So you file them away almost without looking at them. Add to the fact that numbers aren’t your strong point to begin with and, well, is it any wonder you’re feeling overwhelmed?