Financial Literacy for Business Owners: Know Your Numbers Before Year-End
Posted on 21 Nov 2025
With your bookkeeping and payroll prepared for the holiday period, the next step is understanding the financial health of your business. Strong financial literacy helps you make smarter decisions, avoid surprises, and start the new year with confidence.
5 Key Numbers Every Owner Should Know
- Cashflow Position
Cash on hand is king. Ensure you can cover payroll, supplier payments, and unexpected costs over the holiday period. Profit alone doesn’t guarantee you have enough cash in the bank. - Gross Profit Margin
Know how much each product or service contributes after costs. This helps identify where your business is most profitable and where improvements can be made. - Break-Even Point
Understanding the minimum revenue needed to cover expenses helps prevent losses, especially during slower months or unexpected downturns. - Debtor Days
Track how quickly customers pay. Slow payments can create cashflow strain even if your business is profitable on paper. - Tax Provisions
Set aside funds for GST, provisional tax, and PAYE. Missing deadlines can create unnecessary stress in January and February.
Taking Action Before Christmas
A quick review of these numbers now gives you clarity heading into the new year. Check reports in Xero or your accounting system, flag potential cashflow gaps, and plan accordingly.
How We Can Help
Our team works with business owners to simplify financial reporting, highlight key metrics, and provide actionable insights. With the right guidance, you’ll enter 2026 knowing exactly where your business stands — no guesswork required.
