Building a solid and reliable data platform

Over the years I've met many agency owners who don't engage with their finances because they don't trust the information in front of them. Usually that's for one of two reasons: the reports are out of date, or the data behind them is wrong.

Timeliness

Looking at last year's accounts six months after the year end tells you very little about what needs to change now. By then, any problems have compounded. Even a quarterly view may not be frequent enough.

Accuracy

I've seen utilisation and client profitability reports churned out because it felt like the right thing to do, even though the data was wrong. Reports only have value if the data is right. Garbage in, garbage out. Worse, bad data can lead you to the wrong conclusions.

So what's the solution?

Cloud accounting has transformed financial reporting, giving you access to your numbers anywhere, at any time. But software is only a tool. You wouldn't hand a Formula 1 car to a learner driver, and handing your accounting system to someone without the right knowledge causes problems that build over time.

A skilled bookkeeper, ideally one who knows agencies, makes sure the right information goes into the system and comes out in a way that gives owners genuine insight.

At a minimum, your financial data should be updated and reviewed every month. That keeps you in control of what's happening in the agency, lets you spot the warning signs early and act on them.