Do you know your costs, where you sales come from, how much you really make per sale?
Running a company can be stressful and you can’t be across everything, to assist in making good business decisions you need to turn your accounts from a chore into a valuable business tool – this we can help you with. This information is not to be underestimated as you may be:
- you may have costs that you think are fair but when “drilled down into” are not what you think
- Your best seller may not be contributing the best ROI (return on investment), i.e. your second best seller may actually return a better profit after costs are deducted.
Call us for a quote to run a business health check for you and you will probably find some surprising results which will more than pay for the cost of the report.
Management accounts can show you:
- amount of available cash
- sales revenue generated
- amount of orders in hand
- state of accounts payable and accounts receivable
- outstanding debts
- raw material and inventory
Using this information you can:
- See what products are performing well/not performing well
- See how long your clients take to pay
- See what are your fixed costs/variable costs with a view to reducing them
- See what your cost of goods sold are to make sure your pricing structure is correct
- Cash flow forecasts to see what your income is projected to be
- Look for sales trends to help plan for busy and quiet periods
- Look for trends in cost of sales/overhead expenses/direct expenses
Note: The main difference between Management Accounting and Financial Accounting is that management accounts are primarily for assisting owners & managers make decisions about their business whereas financial accounting is for providing information to parties outside the organisation like IRD, Banks etc.