Filing your taxes on time is the bare minimum. Your accounts, looked at properly, also tell you whether the business is actually doing well or just looks like it because there’s cash in the account. That’s the difference between a gestoría that complies and one that also advises.
Start by separating margin from turnover
Invoicing more doesn’t always mean earning more. What matters is margin: revenue minus the direct cost of generating that revenue. A business can grow in turnover and lose margin at the same time if costs grow faster.
Watch fixed costs against variable ones
Fixed costs stay there even in a month you invoice less: rent, your self-employed contribution, subscriptions, staff. Identifying them and reviewing them regularly tells you the minimum you need to invoice each month to avoid losing money, something a lot of people never actually sit down and calculate.
Look at the business every month, not just every quarter
Quarterly reporting exists because of a tax obligation, not because it’s the best cadence for running a business. Reviewing your profit and loss account month by month lets you catch a deviation while it’s still small, instead of discovering it three months later.
The balance sheet tells a story too
Beyond the month’s profit, the balance sheet tells you whether the business genuinely holds up or just lives month to month off whatever cash comes in. We explain it in what a balance sheet is.
We’re working on taking this a step further with automated reports, so that seeing these numbers doesn’t depend on asking for them specifically. In the meantime, if you want to understand what your accounts are telling you beyond tax compliance, that’s exactly the kind of conversation we have with our clients.