Why finances are like a wedding cake

Are you struggling to understand your numbers and take control of your business finances?

Are you waking up at night worrying about cashflow?

I've met with thousands of business owners and to help them understand where to start with fixing this.....A Wedding Cake is the analogy I always use.

If you don't have a strong foundation it's impossible to build what you need on top.

It's is amazing to me how many business owners I speak to that are still using their own spreadsheets, and the bank statement - worse still they believe a Monzo or Starling cash report is a replacement for an accounting system - don't even get me started :)

A financial foundation would be simply:

Weekly bookkeeping

Accurate numbers

Or you can't layer on anything else like;

Estimates of tax liabilities

Tax Planning

Efficient bill payments

Dashboard on weekly growth drivers

Cashflow forecasting

Management Accounts

Investor reports

KPI reports

Strategic performance review

Your risk of failure is higher (the market is 96% over ten years) and your stress levels will be through the roof!

And you try to it will all come crashing down at some point.

How strong are your financial foundations?

Simon