Numbers not making any sense?

By mike | January 19, 2010 | Improve business

You can improve your business profit and performance by analysing the numbers that really matter!

No matter what sector your business is in, there will be a number of key ratios that you can focus on to keep track of your business performance. These numbers should be available either weekly or monthly, depending on the business. In tough times, you need to be able to see the warning signs early.

When you are running your business you do not want to be Flying Blind! If the following apply, address the problems now.

  1. Don’t have the information needed to make key decisions?
  2. Don’t know how the business is travelling?
  3. Management Reports produced too late to be useful?
  4. No way of checking if your strategies are actually working?
  5. Always reacting to market changes?
  6. Working off lag rather than lead indicators?

What you need to do:

  1. Identify the key indicators in your business – and get historical information. Undertake a review of past performance to see the trends.
  2. Run a set of ‘what if…’ scenarios to demonstrate how changes will affect your business. Small changes can sometimes have big effects
  3. Set realistic new performance goals
  4. If required, meet with your accountant on a regular basis and track the business.
  5. Implement any changes required

Mike Harding at Harding & Co, Chartered Accounts is available for a free initial meeting to discuss any business accounting issues. Phone 0401 631 904.