Companies House require you to file your accounts nine months after your year end and if these are prepared for you by your accountant they might be looking at some information which is almost twenty-one months old! Using current information will help you forecast your company’s cash requirements over the coming weeks and months.
Most successful businesses also monitor their Key Performance Indicators (KPIs) which are the critical numbers which can quickly tell if your business is meeting its financial objectives. Four or five indicators are typically used and often relate to sales volumes and margins.
Keeping your financial records up to date in this fast moving environment is critical to controlling the business – you can’t measure your performance if you don’t have up to date information. The days when you could rely on the accountant, who only provides you with out of date information, are long gone if you don’t want to have sleepless nights.