Your Five Minute Business Financial Management Checklist
Too often business owners are working in their business and not taking time to work on their business.
Successful business owners all have one thing in common – they really know the numbers of their business. Ask yourself do you really know the financial indicators of your business and what those numbers were yesterday, last week, last month, last quarter or year? You should.
Here are the basic financial KPI’s you should know in your business:
- Total Sales $
- Sales by Customer Type
- Sales by product or service type
- Gross Margin $ and by product, customer
- Gross Margin %
- Total Discount $ given and by product, customer
- Cost to Produce/ Manufacture
- Fixed cost component
- variable cost component
- Stock turn (if applicable)
- Other key large overheads for your business
- Debtor days
- Ageing of debtors
- Cash in the bank
- Cashflow projection
Debts & Loans
- Interest Rate
- Maturity date
- Costs to exit
- Net Profit
- Net Profit %
- Debt to Equity
These indicators, if used properly, will tell you what is happening in your business and how you might improve your business. If you don’t know or understand them make a point of getting up to speed and using these regularly. It’s crucial for the ongoing success of your business.
Avegna assists business owners with implementing and utilising these and other tools for improving performance. For information on how we can help you and your businesscontact us now.
CEO of Avegna