Financial Systems
Knowledge is power, and to manage with confidence we must know what is happening - it is the reporting systems which tell us what we need to focus on.

Many businesses have their financial reporting systems established by a computer support person or their accountant. This often provides a system which is "standardized" or supports preparing reports for the authorities rather than for the business.

We recommend reviewing and correcting as necessary.  Following from this, it is common that the systems in use to deal with the financial transactions evolve over time (often "on the run") and are modified as rules and processes change. This often results in processes which are more time consuming or less efficient than they can be.

By reviewing these it is likely improvements can be created which benefit every day, week or month.  Accountants and bankers can make financial reporting seem complex and confusing - but they don't have to and should not be.

Financials provide some of the vital information, which combined with the unique non financial measures each business has will allow the Owner to manage based on facts.  Working together we identify what are the important facts for this business and then develop ways to measure their performance as simply as possible to do and understand.

Very often this measurement and reporting on the important "numbers" of the business can be built into or be added to the every-day bookeeping and clerical tasks. This means the Managers can receive the information they need to manage with as almost a "by-product" of the systems.

So, what does this mean?, take a sporting analogy - the final score tells you the result of the game - who won and by how much - much as a Profit & Loss statement tells you if you made a profit or a  loss and how much it was.

But as we analyse the game we want to look at the scores quarter by quarter and see how we performed in each, and think about why, as we do with periodic Profit & Loss reports.

As we look deeper we start looking at the detail - who made the goals, how many attempts did they have compared with their scores, how many goals did the goalie save - from how many attempts, how many fast breaks did we achieve, how many centre bounces did we win and loose.......

In business we have statistics in the same way - a hotel may measure how long it took to clean the rooms for the week - and how this compares to their target and past results, which may lead them to look into why it varied this week.

We might measure how many incoming 'phone calls we received about the advert we ran last Monday, and how many sales we made.

We might measure how much we sold of our different product types and how much profit those sales constibuted to the business, and compare this with our goals, which may lead us to look at why we had this result, and possibly lead us to change how we are doing things....

After identifing the important "numbers" for your business we create the systems to provide them, regularly and on time, always with as little "extra" work by your staff as possible.

By creating systems we make sure that each part of the process is done consistently - each and every time - ensuring reliable consistent information to support decision making. Very importantly by having systems the processes are much less reliant on the individual skills and motivation of the staff who operate them. This also means that training for those inevitable changes of personnel becomes much easier.