Management Report Archives - All Square Accountants

Whenever we’re going on holiday or have plans for the weekend, we always check the weather forecast so we can plan accordingly. It’s no different in business. The forecast tells us if there’s bad weather (poor cashflow) in store based on the direction we’re heading.

Your forecast will tell you:

If you have enough sales in the pipeline to give you the desired level of profit for the year.
Whether your margins are appropriate.
If you need to review your pricing or production processes.
If your business is running as efficiently as it could be.
Where savings can be made.
Whether you should invest more to get a better return.
How much money you need to set aside for tax.
How much money you can draw out of the business each month without running short.
How much debt you’ll be able to pay off.
Whether or not you’ll be able to meet all of the bank’s requirements.

The difference between a business forecast and a weather forecast is that, when the business forecast is showing bad weather, you can do something about it to make the sun come out. The forecast will tell you what’s going well and what’s not, so you can make adjustments to reduce the impact of bad weather.

Just as you wouldn’t go out hiking without checking the forecast, you shouldn’t run your business without an annual forecast. So, don’t live in your raincoat, waiting to get soaked – take control and talk to us about getting your forecast done so you know what to expect.

“Planning is bringing the future into the present so that you can do something about it now.” – Alan Lakein

Do you wait for your Annual Accounts to arrive before you look at your numbers for the year?

By the time your accounts have been finalised, the data is historical. Any changes you make, as a result of reading these, may not necessarily be helpful for your future.

Would you drive your car forward by looking in your rear-view mirror? Talk about dangerous!

If you want to take control of your business’s future, it’s essential that you set targets to achieve and regularly monitor your actual results against them. By producing a monthly Management Report, you’ll have access to up-to-date data that will enable you to quickly identify areas of concern, allowing you to implement strategies for improvement to ensure you remain on track to achieve your goals.

Monthly Management Reports enable you to make better decisions in your business, based on current data. Your report dashboard provides a snapshot of your numbers and means you can quickly interpret your results each month and identify important trends in your business.

However, receiving reports each month is only useful if you set aside time to review them and understand what the reports are showing you. It’s not enough to see that your gross profit has dropped this month compared to last month; you need to be able to understand the reasons why it has dropped so you know the actions you can take to improve.

Because we want you to develop the discipline to set aside time to review and truly understand your reports, our Management Reporting service involves a 15-minute phone call with a senior accountant each month to discuss your results.

This will ensure you receive the maximum value from your reports and can make the necessary changes to your business to ensure its success.

“The future depends on what we do in the present.” – Mahatma Gandhi