Financials: Do I really need to look at these?
Why Reviewing Your Financials Is One of the Best Things You Can Do for Your Business
As a business owner, your to-do list is never-ending—customer service, marketing, inventory, staffing... the list goes on. But one habit that should never fall by the wayside is regularly reviewing your financial statements.
Why? Because your numbers tell the real story of your business. And if you're not paying attention, you might be missing important chapters—or worse, red flags.
1. Know Where You Stand
Your profit & loss statement, balance sheet, and cash flow report aren’t just paperwork—they’re your business’s health report. Reviewing your financials regularly helps you answer key questions like:
Are we actually profitable?
Where is the money going?
Are expenses creeping up?
Without clear answers, you’re flying blind. On the flip side, I understand that looking at all those numbers can be like reading a different language… That’s where UYA steps in! I can help you understand how to read your financials and draw insights to make informed business decisions.
2. Catch Issues Before They Snowball
Maybe your sales are up, but so are expenses. Or perhaps a few invoices haven’t been paid, and cash is tighter than it should be. These are the kinds of issues that grow quietly—unless you’re keeping an eye on your numbers.
Regular financial check-ins help you spot trends, errors, or anomalies early—before they become expensive problems. This is where having, at minimum, a quarterly meeting with your accountant is crucial.
3. Make Informed Decisions
Thinking about hiring, expanding, or investing in new equipment? Those decisions shouldn’t be based on gut feeling. When you understand your numbers, you can make confident, data-driven choices that support long-term growth.
4. Stay Compliant and Ready
Tax season? Loan application? Investor interest? If your financials are in order, you’re always ready. Staying up to date means less stress, fewer surprises, and more credibility when it counts.
5. Set Goals & Track Progress
Looking at your numbers isn’t just about catching what’s wrong—it’s about celebrating what’s going right and pushing forward! Are you meeting your goals? Is that new service line performing well? Is your business operating within the average key performance indicator (KPI) ranges for your specific industry?
Reviewing your reports helps you track your progress and adjust your strategy as needed.
Bottom line:
You don’t need to be a numbers person (that’s why you have me!)—you just need to pay attention to the numbers. And if reviewing your financials feels overwhelming, don’t go it alone. A good accountant or bookkeeper can help you not only understand your numbers but use them to grow your business.
Need help making sense of your financial reports? Let’s schedule a time to walk through them together. Numbers don't lie—but they do speak. The question is: are you listening?
