Running a business is a lot like driving a car. You’ve got a destination in mind — growth, profit, freedom — and you need to get there safely and efficiently. But here’s the thing: if you only look in the rear-view mirror while driving, you’re going to crash.
That’s exactly what many SME business owners do with their finances. They rely solely on historic accounting data — last quarter’s profit and loss report, last year’s tax return, or whatever their accountant sends them after the fact.
This is like checking the rear-view mirror, nodding thoughtfully, and then continuing forward — without checking the road ahead.
Let’s break down the analogy a bit further:
The Rear-View Mirror: Historic Accounting Data
Historic financial data is useful, just like your rear-view mirror is useful. It tells you:
Where you’ve been (last month’s sales, last quarter’s profits)
What’s behind you (debts, liabilities, tax owed)
What patterns might be forming (regular cash flow dips, seasonal sales trends)
You absolutely need this information — it helps you avoid making the same mistakes twice, and it keeps you compliant.
But it’s not enough to steer the business forward.
The Sat Nav: Your Forward Plan
When you drive somewhere new, you don’t just wing it — you use a sat nav or a map.
In business, your “sat nav” is your financial plan:
- Budgets – setting out where you want to go and what you expect to spend
- Forecasts – predicting your future cash flow and sales
- KPIs – markers along the route telling you if you’re on track
With a sat nav, if you miss a turn, it reroutes you. In business, having a plan allows you to make mid-course corrections before problems become disasters.
The Car’s Controls: Day-to-Day Decision-Making
Of course, you can have the best sat nav in the world, but if you don’t use the steering wheel, accelerator, and brakes, you’re still not going anywhere.
In business, the “controls” are your daily decisions:
- Approving or delaying purchases
- Following up with overdue customers
- Making hiring or investment decisions
- Adjusting prices when needed
When you combine good historic data (rear-view mirror), a clear plan (sat nav), and decisive action (controls), you become a confident driver.
Why Many SMEs Struggle
Too many SMEs are driving with one hand over their eyes — they only look at financial results once a year when the accountant sends them their tax bill.
That’s like checking your rear-view mirror in December to see what happened last March and then wondering why you’ve run out of fuel!
By the time you spot a problem, it’s often too late to fix it.
How to Get in the Driver’s Seat
Here’s what you can do to drive your business with confidence:
Get timely management information. Don’t wait until year-end. Look at your numbers monthly or even weekly.
Build a simple forecast. Map out your sales and cash flow for the next 3–6 months.
Use KPIs. Pick a handful of key numbers that tell you how you’re doing right now.
Act quickly. If you see a problem coming, adjust — don’t wait until you’ve “hit the wall.”
Take the Wheel with Our Virtual Finance Office
At Positive Practice Accountants, we help SME owners move beyond the rear-view mirror.
Our Virtual Finance Office service acts as your:
- Rear-view mirror – keeping your bookkeeping, payroll, and compliance up to date
- Sat nav – giving you forecasts, budgets, and dashboards so you can plan ahead
- Dashboard controls – providing clear, real-time numbers so you can make smart decisions every day
Instead of driving blind, you’ll have full visibility of where your business is, where it’s heading, and what to do next.
📅 Book a free discovery call today to see how we can help you drive your business forward with confidence: www.p-practice.co.uk