You can delegate bookkeeping. You cannot delegate understanding your own business.
Delegation without understanding is risk
Hiring an accountant is sensible. Handing over financial responsibility without being able to interpret the output is not. If you cannot tell whether a report looks reasonable, you cannot supervise the work or the money.
Where to start
Three things cover most of the practical need.
- Read a profit and loss statement and explain the movement
- Understand the difference between profit, cash and turnover
- Know your break-even point
Building it into the business
Financial literacy compounds when it is shared. Teams that understand margin behave differently around discounts, waste and spending. That is why we deliver training to teams and associations, not only to individual owners.
Want this handled properly in your business?
SENK provides accounting, tax compliance, advisory and training support for Nigerian SMEs.