Do you have Reliable Information to Monitor your Business?

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. While some might be happy to use the closing
bank balance at month end as a guide, we would recommend that you have 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.

Wednesday, 8th November 2017


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"DB Chartered Accountants recognise that I want the final say. They do not try to run my business but instead provide options from which I can choose. The answers to any queries are just a phone call or an email away. The staff are always friendly and very efficient."
 
Colin Mitchell, Director
MITCHELL CONSTRUCTION LIMITED
 
 
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