Yesterday, I visited a business that, sadly, is making a gross loss.
I was there with an insolvency practitioner, as the business is now uncertain whether it can survive.
Over the last three years, they lacked the accurate financial data needed to navigate challenges, and now it seems like it might be too late.
As their market evolved and new trends emerged, they didn’t have the insights to adapt. Today, their wages and labor costs exceed their sales, a situation that could have been mitigated with better data and timely action.
This experience is a sobering reminder: Accurate financial data is critical, even when your business is thriving. It enables you to spot downturns early, identify trends, and make informed decisions to protect and grow your business.
In this case, the damage was compounded by unreliable data left by a previous accountant, preventing the business from recognising warning signs in time.
👉 Takeaway: Ensure your financial systems and advisors provide clarity and precision. Have information quarterly, rather than once a year. If your year end accounts are not produced until 6 months after the year end, some of the data in those accounts is already 18 months old.
The right data at the right time can make all the difference.
Have you seen businesses struggle with similar challenges? Let’s discuss how we can help organisations avoid this fate.
