Owner-managers who rely on end of year accounts to assess the performance of their business can end up delaying key decisions by months resulting in missed opportunities and ongoing problems not being identified until it is too late.
Good financial information helps you monitor the different aspects of your business and identify problems as they arise.
If your business has annual sales in excess of £200,000, here are just some of the issues that you should be considering at least once a month:
- Are you making the profits that you should be?
- Are you operating above or below your real break-even point?
- Is money going missing somewhere?
- How are you doing compared to last year?
- Could you save money somewhere?
- Are your prices right?
- Can you measure the key performance indicators of your business?
- Are your monthly accounts providing you with information that you need and understand?
- How much profit is each salesman, department or service type generating?