Gravesend accountants AW Accounting think that knowing your business’ financial performance is critical and this can be done on a number of different levels:
- Tracking bank account balance
- Keeping a rolling cashflow
- Monitoring profitability
The truth is that the each one is a function of the next, so if you know you are monitoring profitability, you will be able to meet future debts (cashflow) and there will be adequate funds in the bank.
Many businesses are happy with the first two but profitability seems to complicated. AW Accounting can assist with preparing management accounts, but perhaps more usefully help clients to do so themselves.