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:
- 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
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.
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.