Numbers are there to inform – not mystify!

“What’s behind the numbers?” A survey conducted last year found many Australian business leaders felt overwhelmed by the volume of data they received and found it challenging to understand. Yet knowing your numbers and their meaning guides good decision making – especially in uncertain times. 

There were many lessons learned last year. For business, one of the key learnings involved the use of technology. It seems everyone quickly adapted to Zoom meetings, while working from home and online shopping became essential for many.

Choosing a new technology or learning how to use it was no longer a barrier – it was a necessity!

In September 2020, Family Business Australia conducted a survey which found “great analytic tools have been a lifeline for many companies during the pandemic”.  In fact the survey found that 76% of respondents believed they had the business data and analytics they needed to adapt to changes in the business environment. 

However, the survey also found “A number of surveyed businesses indicated … that analysis was challenging – with the volume of data growing and unprecedented changes making it hard to derive insights”. This was especially relevant for businesses with multiple sources of data such as online orders, warehouse operations and retail outlet/s or construction businesses with multiple suppliers and customers.

Australian businesses are overloaded with data they don’t understand

Analysing data is more than looking at the numbers. It’s understanding what the numbers are telling you. According to the survey, many businesses were overloaded with data and unable to extract meaningful insights when it counted. This inability to understand the numbers greatly hindered management’s ability to make rapid and informed decisions in a highly dynamic environment. 

The survey’s results also highlight the importance of using technology which provides management with useful and timely information that’s easy to understand.

Embracing new and appropriate technology has always been part of the DNA at Numeric Eight. But we don’t keep it to ourselves. We share our knowledge and experience with our clients to make it easier for them to run their businesses, streamline their operations and enhance service delivery to their customers. 

We also believe in educating management on the key indicators of the business so they know what the data means. That’s why our motto is “Beyond Bookkeeping.” 

An important part of understanding our clients’ businesses is investigating and recommending appropriate technologies so it’s easier for them to keep tabs on their finances and understand what their numbers are saying. For example:

• We ensure financial information is captured efficiently and processed accurately using secure, cloud-based software platforms
• Information sources (such as stock, factory production and sales) integrate seamlessly into one system for our clients
• Reports are customised to each client’s requirements to ensure they capture meaningful data that aids planning and decision making
• Personal service is a priority with more than one account manager for each client to mitigate risk and ensure their payroll is always done

Looking for meaningful numbers you can understand?

For many businesses, investigating accounting and data collection platforms is too time consuming and risky to contemplate. But with Numeric Eight by your side, it doesn’t need to be that way.

If you would like to discuss the challenges your business faces in collecting, integrating and analysing your financial information, contact us to arrange an obligation-free, 30-minute chat.