Are your clients selling at a loss?

If your clients aren’t comfortable with their numbers* then you need to be working closely with them.

I used to have a client who was selling at a loss. Her materials were costing her more than her selling price. Even before taking her overheads/fixed costs into account. She also insisted on doing her own bookkeeping even though she didn’t really have time so it was always a long way behind.

8 months after her year end we received her books and pulled together her accounts. For the whole year she had been making a loss. If she had been up to date with her bookkeeping, or if she had used a competent bookkeeper, she might have spotted that loss when it occurred in the first month. Instead it went on for a year and 8 months.

Make sure that your clients’ bookkeeping is up to date and monitored by somebody who is happy with business numbers. That may be you or it may be them

*Take a look at our Finance for Business Owners webinar series if you think this might be of use to your clients