If you go into business you would hopefully have thought about short and long term goals but have you got any idea of how to get there? Lets Balance can help you achieve them by creating a realistic plan.
The advantages of cloud accounting will mean efficiency and productivity are improved so you can spend more time focusing on the revenue-generating activities.
So many businesses have no idea what their accounts look like until several months after their year-end, this is not particularly helpful!
I’m sure you will have asked yourself where did the money go? Have I made any money? How much am I making? Can I afford to take on more staff or make an investment in my business? Can I move to larger premises? When can I do these things?
With real-time information you can get the answers to those questions when you need them. This data can be used for budgeting and cashflow projection, vital for making key decisions.
Management accounting is a phrase used to describe the process of completing the accounts for a given period (usually monthly or quarterly) throughout the year to review the position.
Every large successful business will do this as it is through this process that trends are identified and decisions can be made to mitigate risk (eg overspending in certain areas, bad stock control, non paying customers) or take an opportunity (eg focus on a particular sales area, supply chain management because sales are increasing, plan for bigger premises to support growth).
It will give you a feel for what is normal for your business eg seasonal trends, sales margins etc so that if something changes you will spot it. If you use a budget you can more easily see if things were as expected or if not you can understand why. There will be lessons learned that will mean your planning gets more effective as you go.
Lets Balance has a wealth of experience in this area and will point out trends and changes, areas that need attention to keep your business on plan.
KPI stands for key performance indicator. It’s a way of measuring how the business is doing in the important aspects of the business.
They simplify complex data into easily understandable targets that help to focus the mind on specific areas of the business that need improving.
A KPI is a clear, obvious goal that anyone can understand and aim for. They help decision makers assess the current situation and make informed, real time decisions.