Have you ever gotten to the end of the month and your revenue is less than expected?
In most cases, this is because you are leaking profits. Perhaps, you are loosing money that should be coming in or you aren’t bringing in enough money to cover overhead costs.
Not knowing why or how you are loosing money is frustrating for business owners, as you can’t take the right corrective action to plug those holes.
If this sounds familiar, then you need Management Accounting.
This type of accounting goes beyond the day-to-day recording of finances and focuses on providing businesses with financial information and forecasts for better decision making.
It is an invaluable tool, that turns complex financial data into actionable insights.
At CRESCO Accounting, we are specialised in Management Accounting and have pulled together a list of areas where clients find this service useful.
1. Costs Analysis
Rising costs affect businesses of all sizes and the common ones are operations, inventory, technology and staff. Cost Analysis help identify irregularities beyond total costs so you can immediately address them.
2. Improved Cash Flow
The health of your business depends on whether you have available capital or not. Knowing your current cash position, helps you plan ahead and avoid cash flow problems in the future. Cash flow statements provided by accountants, gives you insight about your future expenditure.
3. Plan for Growth & Funding
When planning on growing or expanding your business, Management Accounting helps you identify quick sales trends, so you can make informed decisions. If you missed your sales target, knowing this information quarterly or bi-annually will help you make changes before the end of the year. If you have an inventory heavy business, breaking down sales per category makes it easy to identify fast moving lines. All of this information shows banks or investors that you have your business under control, making the funding process easier.
Ultimately, having sound financial information and a partner who is able to interpret your numbers and dive deep into the data is a game-changer for businesses.
To start making meaningful business decisions backed by quantifiable data, send us an email [email protected]