News

At Martin & Company we know running a business demands more than passion and hard work — it requires a clear understanding of the numbers that underpin every decision. Yet many business owners admit to feeling unsure when it comes to reading financial statements, managing cash flow, or interpreting key metrics. Strengthening your financial literacy is one of the most powerful steps you can take to improve your business’s performance and resilience.

Start with the basics: get comfortable with your financial statements. The three core reports — profit and loss, balance sheet, and cash flow statement — tell the story of your business’s health. Understanding how revenue, costs, assets, and liabilities interact will help you spot trends, identify risks, and seize opportunities at the right time.

Next, focus on cash flow. Even profitable businesses can fail if cash flow is mismanaged. Track your inflows and outflows regularly and forecast ahead to anticipate pinch points. Many business owners rely on their bank balance as a guide, but a more structured cash flow forecast gives you far greater control and confidence.

It also pays to know your key financial ratios. Metrics such as gross profit margin, debtor days, and current ratio give you quick insight into how efficiently your business is operating. These benchmarks help you compare your performance over time — and against your competitors — to keep your business moving in the right direction.

Don’t shy away from seeking advice. Working with your accountant to deepen your knowledge can be invaluable. Use your regular meetings not only to review compliance and tax, but also to ask questions, interpret results, and explore how to improve your financial strategy.

Improving financial literacy isn’t about becoming an accountant yourself; it’s about making more informed decisions and having meaningful conversations with your advisers. Even dedicating a small amount of time each month to learning more — whether through workshops, online resources, or simply studying your own reports — can make a big difference.

By bridging the knowledge gap, you gain the confidence to steer your business more effectively. Better decisions, fewer surprises, and a clearer sense of control all contribute to stronger, more sustainable growth. Financial literacy is not a luxury for business owners — it is a vital skill that pays dividends long into the future.

If you would like to discuss your business needs Call Martin & Company on 021 422 7240 or email info@martinandcompany.ie

For the latest business/practice news, taxation/financial resources and our Newsletter, visit https://martinandcompany.ie/