Why do we avoid looking at numbers?
Majority of the business owners I know shy away from numbers. There are many reasons for it and here are some of them.
- May be they think they know what is really going on in their business. (So they don’t need to look at numbers to confirm it).
- May be they are afraid it will reveal the truth.
- May be they don’t know how to interpret and make sense of their accounts.
- May be they trust their accountant to guide them.
- May be they are happy with once a quarter/year review with their accountant.
Why numbers become meaningless?
Numbers become meaningless when you look at them long after the event. For an example if you look at your profit and loss account only once a year knowing that the next time you look at the next one, will be in another 12 months time – this makes it meaningless.It is difficult to examine in detail why something happened 10 months ago. And even if you know the reason , it is too late to do something about it.
Here is a simple way to use your Profit & Loss to manage your business to powerful effect: [Read the Full article…]
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