In our blog post this week, we continue a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And our focus this week is on how to improve your business operations.
Step 3 – How to integrate your accounting with your business operations?
So you now have an accounting system in place and want to look at improvements to your business operations. Here are some questions you should be asking:
- Sales – how are you pricing your product / service. Do you have low sales $ yet you’re always busy- there’s a problem!
- Composition of sales / How is each product performing? Are some product lines not making you any sales? Do you have product lines where you are making a million sales? They could both be as bad as each as as they’re unprofitable (we’ll look at this in Gross Profit as well)
- Look at trends across months – helps in forecasting. Busier months? What can you do to pick up business in quieter months.
What could you change in your monthly management report. Consider a breakdown of sales data so you understand where your sales are coming from and which product lines. Continue reading “Getting your business finances sorted. Improve your business operations…”