Why I Spend More Time Talking About Numbers Than Producing Reports
If I’m honest, I don’t think most business owners need more reports.
That might sound like a strange thing for an accountant to say.
After all, accountants are supposed to love reports, aren’t they?
Pages of numbers.
Fancy graphs.
Detailed variance analysis.
Management packs thick enough to prop open a door.
And whilst all of those things have their place, I’ve learned something over the years.
Reports don’t create confidence. Understanding does.
Information isn’t usually the problem
Most growing businesses already have plenty of information.
They have accounting software.
They can see their bank balance.
They have profit and loss reports.
VAT returns are submitted.
Invoices are going out.
In many cases, business owners have access to more financial information than ever before.
Yet they still find themselves lying awake wondering:
- Will we comfortably cover payroll next month?
- Why does cash feel tighter when turnover is increasing?
- Can we afford to recruit?
- Are we actually making the profit I thought we were?
- Is this growth putting pressure on the business?
The issue isn’t that they don’t have enough information.
The issue is that they don’t have enough clarity.
More graphs don’t always mean more understanding
I see this a lot.
Business owners tell me the numbers feel overwhelming, so the natural response is often to add another graph or dashboard.
The thinking is understandable.
Surely a colourful chart will make things easier to understand?
Unfortunately, that isn’t always the case.
Sometimes the graph simply creates another thing to interpret.
Instead of helping, it adds another layer of complexity.
I’ve seen businesses with beautifully presented reports full of charts, gauges and KPIs, but the owner is still asking:
“So… are we okay?”
Because understanding doesn’t come from having more graphs.
It comes from having someone explain what matters, what has changed and what action needs to be taken.
In fact, I’d rather a client left a meeting with one clear message they understand and can act upon than ten graphs they don’t quite know what to do with.
Pretty reports don’t create confidence. Clarity does.
More detail doesn’t always mean more clarity
Another tendency I see is that when people feel uncertain about the numbers, they respond by creating more detail.
More tabs.
More KPIs.
More departments.
More categories.
More reports.
More spreadsheets.
And before long, everyone is drowning in information.
The irony is that the more detail we create, the harder it can become to see what’s actually important.
I’ve seen businesses with reports that break everything down into such tiny pieces that nobody knows where to start.
The questions become:
“Which report should I be looking at?”
“Which numbers matter most?”
“What should I do first?”
Instead of creating clarity, the sheer volume of information creates overwhelm.
Sometimes the most valuable thing we can do isn’t add more detail.
It’s step back and ask:
“What are we really trying to understand?”
Because most business owners don’t need to know everything.
They need to know the few things that will help them make better decisions.
Sometimes finance isn’t about adding more information. It’s about stripping away the noise.
Most business owners are busy doing what they’re brilliant at
The businesses I work with are usually growing.
Which sounds wonderful, and it is, but growth brings its own challenges.
Owners become heavily involved in delivery.
They’re supporting clients.
Managing staff.
Winning new work.
Solving problems.
Trying to keep everyone happy.
And somewhere amongst all of that, they’re expected to sit down and interpret a detailed management pack.
Even if they find the time, many are left thinking:
“I know these numbers matter, but what am I actually supposed to do with them?”
Because numbers without context are just numbers.
A conversation often matters more than a report
Some of the most valuable work I do isn’t creating reports.
It’s sitting down with clients and talking through what the numbers are telling us.
Questions like:
- What’s changed since last month?
- Why is cash tighter than we expected?
- Are our margins where they should be?
- Is growth creating pressure that we need to manage?
- What risks can we see coming?
What should we be focusing on over the next few months?
Those conversations lead to decisions.
And decisions are what move businesses forward.
You don’t need to become a finance expert
I think many business owners put unnecessary pressure on themselves.
They believe they should understand every line of every report.
But that’s not your job.
I don’t expect myself to know how to design a website, run a marketing campaign or deliver specialist services for clients.
Likewise, I don’t think business owners should feel they need to become accountants.
Your role is to lead the business.
My role is to help you understand what the numbers are trying to tell you.
What business owners really want
In my experience, business owners aren’t asking for more reports.
They’re asking for:
- Confidence that payroll will be covered.
- Fewer nasty surprises.
- Better decisions.
- Visibility over the future.
- Someone who can explain things without jargon.
- Peace of mind.
In other words, they’re looking for clarity.
And clarity is very different from information.
Why I spend more time talking about numbers than producing reports
After more than 25 years working with businesses, I’ve come to believe that the real value isn’t in the reports.
Or the graphs.
Or the dashboards.
It’s in helping people understand what those things are trying to tell them.
Because when owners understand the story behind the numbers, they make better decisions.
They sleep better.
They worry less.
And they can focus more of their energy on the work they love.
That’s why I spend more time talking about numbers than producing reports.
And I think that’s exactly how it should be.
Need clarity rather than more reports?
If you’re receiving monthly reports but still don’t feel completely in control of your numbers, perhaps what you need isn’t more information.
Perhaps you simply need someone who can help you make sense of it all.
I’d love to have a conversation.