Along the path of growth; many business owners decide that “the numbers” (other than Revenue and Net Profit) are too hard to understand; so they hand the job off, typically to a CPA or a controller. Which is okay; IF either one of them are great with the numbers.
The real problem here though is; the numbers including Balance Sheet, Profit Loss Statement, and Cash Flow Statements tell a story. That story is either abundance now and in the future or peril. If a business owner has no idea how to read the numbers, it’s like driving a car blind folded. Sure you have your hands on the steering wheel and maybe a great co-pilot, but you yourself, the person that has the oversight of the entire company can’t see where you’ve been and wha the future holds.
The best solution to this problem is for the executive to learn from one of the best. Simple Numbers by Greg Crabtree is highly recommended for both business owners and their leadership team. In it; Crabtree breaks down the often complex into the simple. Then further creates actionable advice like Salary Caps. If the NFL has them; why don’t companies? And, labor is almost always the biggest line item expense on the profit and loss statement. If you need help creating you’re businesses Salary Cap or understanding the numbers, reach out.