When you drive a car, have you ever noticed how important the indicators on your car dashboard? It tells you how much fuel in your tank, how hot your engine temperature, how stable your vehicle stability control, how safe your airbags, what speed you travelling at, etc. It provides you important information with a glance of your eyesight. That is the reason the car manufacturer provides it right in front of a driver. And it is a very important tool that a driver needs to know it before he/she starts the journey.
It is the same situation with your business, do you have an instrument to tell you every important bit of your business? At MAS TAX Accountants, we understand those needs for business owners, and we want to help you to utilise your maximum potential.
Below are just some of the indicators that we put in your business dashboard instrument:
- Profit – Do you know how much profit you have made against your target and where will be the market, at current economic situation, drive your profit? What are the risks and opportunities that may influence your profit?
- Working Capital – Do you have enough working capital to ensure your operation running smoothly without any hiccup? Do you have enough capital to replace current assets so the company remain competitive?
- Cost of Goods and Overhead – How much are they? Is the processing running efficiently? Any room for improvement? What’s the impact to your bottom Profit and Loss if you can reduce it by 1% of your sales turnover?
- Inventory – Do you have enough inventory level to run day to day operation? How many will become obsolete? Any overstock sitting on the warehouse? How many understock that make you lose the clients?
- Debtor/Collection – What is your trading term? How much sitting in the overdue debtor lists? Are you currently financing your customers operation as many outstanding uncollected? Can we extend a bit more days from your suppliers?
- And many more
We won’t leave you in the dark trying to guess the meaning of each instrument. We sit down together with you to explain those indicators in simple plain English, and give you some suggestion to improve the existing situation. So you get precise information to be used for making a good decision for your business.
Below are some graphs that we use to give you an early indicator of your business situation:
Actual Profit/Loss compare to Budget, and gross trading summary
Actual and Budget Sales Comparison; and Month Net Profit Margin
Cash Flow Position to ensure enough working capital to support your business operation
Controlling your credit clients before they become bad debts, as well as monitoring your stock movement
And not only that we can also asist with benchmarking your company against your competitors’ performance, so you know where your current position and where you want to go in the near future. You may think you are doing OK, but how you would know if you are not comparing your performance against others.
To discuss how we can help you with implementing the above indicators into your business needs, please contact us.
For an appointment, or a confidential discussion of your needs, please contact our Tax Accountants today, or call 1300 627 829.
