Many of our clients who work with us understand the importance of their financial data – however, one of their main reasons for switching to us as clients was not understanding their financial data.
Having an accurate overview of your business at a month or quarter end is valuable as it helps you make better short term and long term decisions, such as:
Asset making decisions
With the super deduction having come to an end at the end of March 2023, there is still the annual investment allowance available to limited companies. By investing in fixed assets, companies can significantly reduce their corporation tax. However, companies can only really look to invest in such assets if their cash flow allows it.
By reviewing their financial information, companies can also review their fixed asset register for assets that are no longer used by the company for potential write offs.
Future planning
There’s no doubt that your financial statements are the basis for decisions within companies. Looking at financial information, and presenting these in different ways, such as charts or tables, allows you to scenario plan – for example, what would the effect on your company be if you were to hire another two members of staff?
Profit and loss
Reviewing your profit and loss account year on year can provide valuable insight into expenditure. The profit and loss account provides critical details to business owners – unlike a cash flow statement, the profit and loss account demonstrates actual spend.
It also allows business owners to determine whether budgets have been met, or whether they need flexing.
