How do I overcome ‘Missing Link Syndrome’?

Every business spends money on either a bookkeeper or an accountant and in some cases, both. So, why do 87% of businesses fail because they don’t understand their numbers?  This is what I call the ‘Missing Link Syndrome’ The missing link is you, the business owner. The information you are missing is what is happening on a monthly basis, throughout the year. In order to be successful it is your responsibility to know what is actually happening in your business.

How do you do this?

  • Review what is happening in your business on a monthly basis
  • Regularly print out your Profit and Loss Statement
  • Ask your bookkeeper or accountant specific questions in relation to your reports
  • Initiate discussions with your bookkeeper or accountant to find out how your business is really performing – in real time
  • If you don’t understand the terms they are using, ask them to speak a language you can understand

You can’t just leave it up to your accountant and bookkeeper to deliver this information; it is your responsibility to fill the missing link in your business, to find out what’s really happening and how your business is performing. Once you begin looking at your reports regularly and asking the right questions you will be able to get the correct information you need to increase profitability and cash flow.

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