Case Study: Measuring the Health of the Business

Situation: Being able to measure the health of a business is paramount to any owner manager.

Action: We provide our clients with practical management account preparation and identification of key performance indicators (KPI’s). Whilst a KPI may sound grand and only for the big multinational, we have helped small business focus on issues of costing, margins and sales price to help them make more by getting the right costing structure, so that they just don’t give away their hard work.

We have successfully guided many businesses through this process achieving

• Bespoke management reports on a monthly basis, analysis against plan
• Annual budgeting process
• Stock control
• Review of pricing and control of costs
• Refined cash collection processes

Regular management accounting from a sound accounting system that is kept up to date will help identify those KPI’s.

Importantly management accounts must be measured against a desired plan and objective, for example an exit, business growth or life style strategy. The plan should reflect both a sales and marketing approach. We believe that these plans should be created by the owner manager and not by some “magic” that an accountant might suggest.