Latest Case Study

Design agency case study

Design industry client How we helped our clients improve profitability
VIEW

Introduction

Introduction to Beyond the Numbers

5

Understand your business trends

How does your performance compare to previous years?

It is almost impossible to evaluate how well you are doing in business by looking at one set of figures from one financial year. Performance is always relative.

How good, for example, is a profit of £100,000? It may be really good for a business with a target of £20,000, but it would be bad for a business with a profit of £500,000 in the previous year. How would you feel if this was your business and every other business in your industry achieved a profit of £5 million?

You can therefore only really judge performance by comparing it to:

  • Targets
  • Previous months and years
  • Others in your industry

Your one page plan (see Measure your performance) should compare your monthly performance with your targets.

The benchmarking analysis (see Benchmark your competitors) will show you how you compare against others in your  industry.

The aim of this step therefore, is to identify and analyse the underlying trends in your business over the last five years. The key trends that successful businesses focus on include:

  • Profit and loss accounts trends such as sales, margins, profit drivers, breakeven
  • Balance sheet trends such as liquidity, debtor days and stock turnover
  • Trends in key ratios such as gearing and return on investment

We can help you by carrying out a financial performance review for you and explain it to you in plain English helping you to really understand the reasons behind your business performance.

If you would like to have a chat about this, give us a call

  • We have worked with Val Wishart and her team for a number of years and have experienced nothing short of a first class service at all times for our clients. The business is living proof that the numbers are just the start.

    Professor Stewart Brymer, OBE, WS, Brymer Legal Ltd

View More

How Beyond the Numbers will help you…

We believe that you should want more from your accountant and we are happy to help you with our 9 step plan towards performance measurement and improvement.

  • The Numbers

    We believe that you should want more from your accountant and we are happy to help you with our 9 step plan towards performance measurement and improvement....

    VIEW NUMBER
  • 1. Set your goals

    We believe that you have to look at both your business and your personal life if you are going to set goals for the business as the two are intrinsically linked – through you!...

    VIEW NUMBER
  • 2. Develop your plan

    Having identified your goals you need to convert these into a business plan so that you know what your business needs to do to help you achieve these goals....

    VIEW NUMBER
  • 3. Measure your performance

    Once you have created your forecasts and budgets (see Develop your plan) you need to systematically measure your actual performance and compare it to your targets....

    VIEW NUMBER
  • 4. Your annual accounts

    Every business is required by law to produce annual accounts and of course those annual accounts must comply with all the relevant rules and regulations....

    VIEW NUMBER
  • 5. Understand your business trends

    It is almost impossible to evaluate how well you are doing in business by looking at one set of figures from one financial year. Performance is always relative....

    VIEW NUMBER
  • 6. Benchmark your competitions

    Benchmarking is one of the most commonly used management tools in the world and it’s not hard to see why....

    VIEW NUMBER
  • 7. Value your business

    Is one of the reasons you own a business to create value for yourself? In other words, do you want to build a business that is actually worth something when you want to sell it or ...

    VIEW NUMBER
  • 8. Improvement potential

    Most businesses always have room for improvement and it can be dangerous for a business owner to sit back and assume that everything is going really well and will continue to do so...

    VIEW NUMBER
  • 9. Improvement action plan

    Nothing changes until something changes so you need to develop and implement an action plan....

    VIEW NUMBER

Get in touch today

Book an appointment and we’d be delighted to tell you more
about our experience helping other clients in your sector.
We’d love to help you, too.

get in touch

Get in touch today and let’s discuss “The numbers”

0131 225 5155Get in touch
Get our latest news, advice and tax tips.
Website by 39steps