Why is it so important to know your financials? I mean that YOU know them, not just your accountant.
Your business may be an SME, but you still have to follow the same rules and get the ‘money’ numbers in order and available all the time; up to date!
The news of Tesco’s ‘error’ has hit it’s value and is very uncomfortable. This sort of error would sink most SMEs.
Cick this link to see what the BBC have to say: Tesco suspends execs as inquiry launched into profit overstatement
How can they (you) run a business where they are making business decisions based on incorrect/non-existent numbers?
The retail store industry in this country operates on a fine margin with lots of discounting to get cashflow.
Tesco has appointed Deloitte to ‘independently investigate the issue’.
What would happen to your business if you had a massive unforeseen shortfall in sales and profit?
What are you doing to make sure you know your financials and other key numbers for your business? Might be worth thinking about a bookkeeper and implementing a management account process that gives you up to date information on which you can choose how you run your business.