Numbers are everywhere, and for the most part, we just ignore them. That is unless we’re forced to pay attention to them when it comes time to do our monthly taxes or budget. But, for most people numbers don’t seem interesting. And this is something I’ve seen over and over again.
Know your numbers
I can’t emphasise enough how important it is to know your numbers. In your business, your numbers are your best friend. Once you realise that you will become less anxious about them.
The enormous benefit your business numbers give you is clarity about how healthy your business is. They will help you in the good and not-so-good times. Because numbers don’t lie to you. They will always give you that reality check. They’ll wake you up from slumber and prompt you to take action.
Financial ratios
Your numbers can be turned into financial ratios. Consequently, they can tell you a lot about your business’s health and where it could be headed in the future.
Here’s a quick guide to how to know your numbers and how to use the most essential financial ratios. Subsequently, you can start using your numbers to make smart decisions for your business.
The importance of knowing your numbers
To sum up, numbers are a powerful tool for telling your business story. In this video, I talk about how to use financial ratios, assess financial documentation, form a view of your business, and focus on the key number areas. However, to clarify, it’s important to remember that financial numbers don’t give us the full picture. That’s why it’s so important to join my Numbers Know How Financial Story Plan Community and learn more about using numbers to tell your story.
With the right tools and knowledge, you can use numbers to make informed decisions that will help your business grow. What was your favourite tip from this video? Let me know in the comments below!
P.S.
Sign up for your FREE trial to Numbers Knowhow, the revolutionary cashflow software designed to empower you with the numbers you need to transform your business. With Numbers Knowhow, you’ll have access to powerful tools and features that will unlock a world of financial understanding and growth.