Running your own business can mean that you need to keep on top of some key areas of the business, including the finances. Whilst it may be better to employ the services of a Swindon Bookkeepers like https://chippendaleandclark.com/services/accountants-swindon/ to undertake the day-to-day financial aspects of your business, there are some key figures that you need to be aware of.
Sales – this figure will give you an indication of how well your products and or services are selling. It is important to break them down into relevant categories. This allows you to be able to see what products are performing and which ones you might want to consider removing or pushing in your marketing activities.
Expenditure – this is all the regular items that you have to pay for, such as your insurance, building costs and any money that you spend on the items that are needed to carry out your services or to create your products. You can link these to the same categories you have in your sales if you need to.
Profits – this is the money that is left over after your business expenditure has been taken out. It is a good way for you to see whether your business is doing well and growing or whether you are in a situation where you are spending more than you are bringing in.