Do you have Reliable Information to Monitor your Business?

A business owner may have a variety of measures they use to monitor the progress of the business on a monthly basis. We would recommend that a business has a system to monitor:
 Total sales for the month – How does this compare to previous months
or any forecast completed?
 Direct costs, including purchases and wages – Are these in line with expectations based on the sales
for the month?
 The overall gross profit and gross margin – Is this consistent, improving
or deteriorating?
 Accounts Receivable – What level of receivables is over 30 days old? Is a system in place to follow
them up?
 Accounts Payable – Are invoices paid by due date? If not, is the situation improving
or getting worse?
 Overall profit earned for the month – What is the profit? Is this as expected? Is the profit enough to cover loan payments, drawings, tax and asset purchases?
If you would like to put in a monthly reporting system we are able to assist with this, either by completing adequate reports for you or showing you how you can find this information in your current accounting system.
If your current reporting system produces profit and loss reports we can also review this with you to help you understand how your business is progressing.
Contact us to discuss how we can assist.