Every time the calendar ticks over into a new month, a clock starts running in businesses all over Australia. The race is on to finalise the previous month’s accounts and report to investors and other stakeholders.
Now, if you don’t have investors or stakeholders – or your investor body consists of the bank, your parents and great aunt – then your motivation for preparing a report for shareholders is probably pretty low.
However, it’s a great habit to get into for a number of reasons.
Firstly, it forces you to sit down, examine your accounts and actually write down the highs and lows of the period (whether it’s a month or a quarter). This can be very beneficial when you are trying to ascertain what’s worked and what needs more work.
Secondly, it’s a good habit to get into. As your business grows and you potentially look at bringing in other investors, having these monthly or quarterly reports will provide proof that you have rigorous processes in place to analyse your company and look after shareholders.
So join the rush and get it done – today!