Wednesday, March 16, 2011

Keeping your finger on the pulse of your business

When running a small to medium sized business, it's a good idea to:
  • have just enough stock on hand to deliver customer orders on time
  • ensure sales to customers generate sufficient profits to cover all running costs and a reasonal rate of return for your investment
  • monitor your cash flow, ensuring customers pay their bills on time, and you don't pay your bills earlier than necessary. You should also be aware of any unusual expenses so they can be investigated

To grow your business, you'll need to:

  • identify and focus your marketing on products and services that generate the most return
  • increase your capacity to handle the growth of your business without stressing out your team
  • take advantage of efficiencies of scale, such as higher volume purchase discounts, reduced administration and distribution expenses

You can start to do this by hiring a good management accountant with the skills to extract this sort of information from your accounting system and present it to you in a meaningful way.

Or you could substantially automate this process by investing in a Business Intelligence Centre, that will extract key performance indicators from your accounting system and present it in a series of easy to understand dashboards and management reports.

More information: Axsapt

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