"If you can't measure it, you can't manage it” is an often misattributed quotation and although there are many non-measurable tasks a company can still manage, this quotation still makes a lot of sense within business.
Being successful demands every part of your business performs well against measurable targets. To monitor your progress towards achieving your business goals, you need good management accounts.
From KPI identification to enhance your business growth, through to monthly cash flow forecasts and ongoing forecast updates, The Profit Key can provide advice on the very latest systems and processes that produce management accounts that work for your business. What's more, we take an active involvement in interpreting the figures with you too.
“The Profit Key have helped us introduce much better systems in order that we can control and monitor the business far more easily. The Profit Key provide us with regular management accounts to help us identify any problems or issues arising and take steps to rectify them. Our business has grown significantly over the last seven years and The Profit Key have been invaluable in helping us”
Sharon Wells – Director – GTEC Engineering Ltd
What exactly are Management Accounts?
Good Management Accounts are really all about looking forward rather than backward. Management accounts and the associated Key Performance Indicators (KPIs) give you a summary of your financial position as well as important financial trends in your business. As underlying drivers that run your business, by examining the KPIs and measuring and reporting on them either daily or weekly, you’ll reveal knowledge or intelligence about your company’s operations and its impact on the finances of the business.
Why do you need Management Accounts?
Running your own business is challenging. You have to make decisions on an hourly basis, sometimes at the drop of a hat. Some of those decisions will have a profound impact on your business results. The objective of management accounts is to provide timely and key financial and statistical information to help you avoid making the wrong decisions. Rather than waiting for the year end accounts, interim figures allow you to identify trends in the business at an early stage which will help you make well-informed business decisions to improve your business results.
Why use the Profit Key to provide your Management Accounts?
The Profit Key will examine your business and determine which key numbers matter to the goals of the business. We can then put in place the correct measuring and reporting systems to allow you to identify what you need to do to grow your business.
No two business are the same and different businesses have different management accounting needs depending on the areas that are important to them. The range of services The Profit Key can provide include monthly cash flow forecast which serves as an early warning indicator that your expenditures are running out of line with sales. Forecasts can be updated for actual results to date and variances highlighted with reasons; so you can see why results turned out differently to what you had forecast.
Identifying the Key Performance Indicators such as gross margin, interest cover, net borrowing, debtor days, creditor days, stock turnover days can tell you if you’re on course to achieve your goals. If needed you can then make changes to your strategy in order to meet your business goals.
Business is hard enough without being at an unnecessary disadvantage through lack of relevant information to make informed decisions. Because clarity is important, The Profit Key don’t just provide the information; we get involved in extracting the information and interpreting the figures for you. We can provide suggestions on how you might improve your performance by identifying and eliminating potential problems in your daily operations.
Why not let The Profit Key show you how a professional set of management accounts can clearly influence your decision making processes and future business success?