By Chidomere Ndubuisi

- January 3, 2023

Dear CEO,

It’s month end and also the end of the 3rd quarter in 2022. Do you know and understand the numbers and data behind your business operations?

Do you keep records of your income statements, your balance sheets, and your cash flows? You might be keeping the wrong records.

On sound cash flow management and strong record keeping procedures, your business success will depend. It is simply impossible to assess your company’s financial health or profitability without accurate records. You should be aware of the significance of adequate record keeping standards and cash flow planning as a business owner.

Accurate financial record keeping will be crucial to your business for the following reasons: –

  • To provide financial data that help you operate more efficiently, thus increasing your profitability.
  • To identify all your business assets, liabilities, income and expenses. This information can then be used to compare with your sector’s averages and highlight your strengths and weaknesses.
  • Good records are essential for the preparation of your end of year returns and financial statements. These statements are critical for maintaining good relations with your bank.

How do you run and lead your business blindly without having an idea of the numbers and without knowing and analyzing the profit and loss statement? If you don’t have sound information about your business, you can never be in control of it.

If you are one of the culprits, don’t remain ignorant of the numbers and data. I can hook you up. Study about income statements, balance sheets, and cash flows. Download financial apps that can help you and thank me later.

Share this article