Virtual Balance came about through frustration at not being able to communicate effectively with our accountant. Following the setting up of CITS Ltd I (Sue) took on the role of “accounts dept” over the next 8 years through trial and errors I worked out how to get the invoices out and then paid on time, how to record the supplier invoices in and get them paid on time, how to calculate the VAT and get that submitted correctly and on time and a whole host of other day to day bookkeeping activities. The bit that was missing was converting this information into something that helped us in the business. I would also switch off when the accountant told me what depreciation he had applied to the P&L and what difference the prepayments and accruals had made. I remember leaving our annual meeting thinking next year I am going to understand what it all means. I went away and signed up for a bookkeeping course. Over the next 2 and a half years I spent every spare moment studying and sat 4 exams and I can now understand what those things mean.
What I discovered on my journey was that I didn’t really need to know all of it for my numbers to help me in my business. The key things are understanding the difference between and profit and loss report and a balance sheet and working out your individual KPI’s (Key Performance Indicators). The start of all of this is accurate data recording, whether you are using accounting software or excel if you haven’t taken the receipt out of your wallet and recorded the expenditure it doesn’t count as far as your financial reports or the HMRC are concerned. If you spent £10 per week on your business out of your money and never recorded it you are already £520 personally worse off and your business records are inaccurate. We are passionate about business owners understanding enough to make a difference but not getting completely bogged down in the detail. Using the knowledge we have gained we can do as much or as little recording and translating your business numbers freeing you up to focus on your business.