03 Nov What Reporting Can Reveal About Your Business!
Business reports are a valuable tool for any business owner wanting to understand where their business is at while identifying areas for growth and improvement.
Business reports give us useful insights such as information on spending, profits and growth. Reports provide vital detail that can be used to help develop future forecasts, marketing plans, assist in budget planning and better the overall decision-making for the business.
It is important for clients to understand their reports. More and more business owners are becoming aware of what is happening in their business and as a result, are more confident when making decisions. Having a good accountant that you can lean on for guidance and who can break down financial reports clearly, and in simple terms is ESSENTIAL! Don’t we love that word…
Some examples of reports that can help your business are:
- Late paying debtors
- Upcoming supplier payments
- Gross Profit or Net Profit percentage
- Break-Even point
- Minimal cash flow required to pay creditors, salaries and taxes
- Slow-moving stock or items
- GP % per stock item
- Highest paying clients or location of the highest paying client
- Is your advertising and marketing efforts making a difference to your profits or sales?
- Finding patterns in your transactions
- Managing stock
- Seeing the bigger picture for your business
There are a few applications that link in with Xero, Quickbooks and Sage, all of which can be incredibly helpful but only around 9% of businesses regularly use more than five applications to assist in running their business.
Unfortunately, you can have the BEST applications and tools money can get you and still get no additional value from them if you don’t use them to their potential! Or if they are just the wrong tools for YOUR business.
Be selective about which digital platform and applications you want to use and make sure they add value and are worth your time! If in doubt, talk to your accountant about the best way forward for your business.