4 Important Reasons to Look at Your Financials Monthly

I know a lot of CEOs don't like to look at their numbers. They don't want to spend time looking at their numbers. They’re busy busy people and for many of us we can find looking at the numbers intimidating, confusing or stressful. And if you’re reading this and this is resonating with you then know that you are not alone!

As a visionary Business Growth Strategist I know that there are 3 crucial elements to focus on when you want to grow and scale your business to the next level and these are time, money and mindset so it’s important that as CEO’s with big visions we start to get comfortable with our numbers, and even if we hire out the day to day finances, know what we need to look for so that we can reach our goals.?

This was perfectly highlighted? with a client of mine who’s a multi-seven figure CEO and before working with me he wouldn’t look at his figures until tax time when he would often get surprised. When we started working together I we started looking at the figures on a monthly basis - not for long -but to make it a regular habit. And let me tell you he started to get so excited to look at the figures. Why? Because in the first year of looking at his numbers his business grew 60%! Yes,60%!

So why did this happen just from him looking at the figures? Well there are a couple of reasons but first and foremost what we focus on expands! When we start to put our energy and attention into an area of our business that we have previously ignored or avoided, then we can quickly see better results in that area just by spending 10 minutes a? month giving it a little attention and love.?

Wouldn't that be worth 10 minutes a month? If your business was able to grow by even 20 or 30%? Wouldn't that be amazing??

Why not book a “money date'' with yourself on your calendar right now to start looking at your figures once a month for 10 minutes? and see what happens!

The second reason that the business grew was that he wasn’t surprised? when it came to tax time. No huge figure caught him out at the end of the year that he then had to find money for the tax bill. He had a good idea of the amount of taxes he would owe and planned for that amount. Of course you can never be exact but planning helps because then you can factor in other things such as staff bonuses, big expenses and investments in the business etc.?

Being able to financially plan ahead in your business is very very important if you want to grow to multiple seven and eight figures. You cannot wing your way to this level of success let me tell you that!

The third reason was that nothing got out of control before it was too late! Another one of my clients by doing this process noticed that his supply costs were spiraling out of control in one of his business locations. Because he was looking at the figures regularly he was able to catch this in time and question his employees about the issue. It turns out one of the employees was putting a rush on his supplies which wasn’t necessary.?

Imagine if this had gone on for a whole year before anyone noticed? Imagine how much money would have been ‘lost’ over this very simple to fix issue. Plus he was able to address with his employees how to better deal with ordering supplies and get some new processes in place that would stop that from happening again.?

Being able to look at your number monthly is so important and if you have a software like Quickbooks it’s also super easy to do because you can print off reports that you can easily scan and be able to spot any big discrepancies before they get out of control and cost you 1000s of dollars.?

The fourth reason is that your finances are really the pulse of your business. Think about it like going on a driving trip somewhere. Before you head off you set the GPS or look at a map and get a clear idea of where you’re going and the direction you’re headed in. It’s the exact same in your business.?

You need to know where you're going, you need to plan for the future, you need to look and keep going in the right direction. And your finances will direct in which direction and how fast you go so if you’re not looking at them every month, you're missing a huge part of your business.?

Did you know that 50% of businesses will fail in the first five years they're in business. And out of those 50% businesses that fail, what you might not know is that 82% of those businesses failed because they didn't understand or they weren't looking at their numbers and how it affects their business.

Don’t let this be you! This is not a reason to fail. Take the time to understand and look at your figures and hire someone to help you too! A bookkeeper or CPA will help you calculate your figures but they may not be looking at them month to month either or they may do but they don’t know the bigger picture and vision for your business so won’t know what’s important to highlight to you.?

This is one of the key 3 pillars that I help CEO’s with - financial management (as well as time management and CEO mindset) so if you would like more support on this please reach out and let’s see how I can help you reach your big business vision this year!