Cash is the oxygen that keeps your business alive. Without it, even the most ambitious and innovative businesses will fail. Yet, many small businesses don’t have an effective plan in place to manage cash flow, struggle to raise finance and are using outdated methods of collecting cash. We’ll show you how to get paid quicker and take the hassle out of managing your cash flow.
Business owners depend on management reports to measure their profitability, to know where that profit is at the end of a period, and whether the business is financially sound or whether it needs improvement.
Business owners use management reports to keep a close watch on the lifeblood of the business: cash flow.
Monthly management reports are critical for analysing trends in order to make better decisions. for example, analysing sales trends can tell you whether your products or services are priced right.
These reports can help you determine which sales are costing you too much. Perhaps increasing sales volumes tell you that you need bigger premises – how much can you afford to spend? management reports can help you to answer these important questions.
Without these reports, you cannot draw vital comparisons – actual versus budgeted income and expenses; variances between the current year, quarter, month and the previous year, quarter, month; cost to income ratio.
Management reports assist you to monitor and control cash flow and ensure that your business is in good financial health.