Do you know how to read your financial reports? This is the fifth article in the series Release Your Fear of Finance.
One of the latest trends to hit the workplace is reflection. There are countless variations on the technique, but all of them include scheduling regular moments to pause your current activity and assess your progress. It could be using the last 15 minutes of your workday to reflect on the projects you’ve completed or taking one morning a quarter to assess your team’s progress toward shared goals. A recent article from Harvard Business Review affirms:
“Reflection is a valuable tool for making better decisions, at work and in the rest of life. It is useful day by day, task by task, and problem by problem.”
Reflection—whether daily, quarterly, or annually—has been proven to increase productivity and success over the long haul. The key is determining what you want to learn by reflecting and then knowing how to adjust future efforts based on what you learn. (If you were wondering… this is the hard part.)
Officeheads has discovered that our clients are quite open and willing to schedule regular times to reflect on past performance. What they may not be sure about is how to read their financial reports in a way that informs next steps.
That’s why we offer a comprehensive method that helps our clients design and read their financial reports to make sound financial decisions. Here’s how we do it:
#1 DESIGNING THE RIGHT REPORTS
Nothing amps up the fear of finance like a lack of direction. A company without access to proper financial reports is like a traveler wandering in the wilderness all alone without a map on a cloudy night.
You need access to financial reports that tell you where you’ve been, where you are now, and where you want to be in the future. Without the data to lock in your position—past, present, and future—you have nothing solid to lean on for making strategic decisions. As you might guess, this only amplifies anxiety.
Officeheads knows the information business leaders need to get their bearings so they can make wise decisions for business success. We partner with you to understand the questions you are asking about your business then design the right report package that is distributed on a regular basis so you can reflect on your current status.
#2 READING THE REPORTS RIGHTLY
Having a map in-hand is only of help to a lost traveler if they know how to read it. Without the insight and skills, a map lacks power to get you where you want to go.
So once you have the right reports, you need to know how to rightly read them. We train our clients to read their data using our proven methodology, which includes reviews of:
- P&Ls (monthly and quarterly to understand cash flow, profitability, and KPIs that make sense)
- Balance Sheet (monthly to understand the current financial health of a business as it relates to assets, liabilities, and equity).
- A/P and A/R reports several times per month (to make decisions on which bills to pay and who to contact to collect overdue invoices)
FACE YOUR FEAR OF FINANCE HEAD-ON WITH OFFICEHEADS!
Knowing what to reflect on and how to assess what you’ve learned will make a tremendous difference in your business. Don’t let the fear of finance keep you from the information you need to make sound financial decisions! The Officeheads team is full of experts who know how to get your reports in order and get you trained in reading them. If you are ready to face your fear of finance, reach out today. We have courage to share!