What should your financial management pack include? At minimum it should contain the following:
- Profit and Loss Statement: What you have earned and spent for the month and year to date.
- Balance sheet: What you own, and who you owe and what the effective wealth of your business is.
- Cash flow statement showing what money has come in and what money has gone out. Also include a forecast of what is expected to come in and go out over the coming months.
- Sales List showing who are you selling to, what are you selling and how much are you selling of what.
- List of work in progress and outstanding quotes/work (measure of likely future work)
- Stock listing (if relevant) showing what stock you are holding, how much and what is on back order.
- Debtors Report being a list of people who owe you money, what they owe and how long they have owed it to you for.
- Creditors Report being a list of people you owe money to, how much you owe, when it is/was due to them.
- A customised report that measures your Key Performance Indicator’s (KPI’s) (industry specific)
- A pictorial representation of your results (dashboard report or similar); a picture tells a thousand words and graphs are great at highlighting trends and communicating numbers to visual people, and those not fond of a sea of numbers.
If you are wanting to expand your team and step away from having to do everything, it is also a great way to keep tabs on how things are going. The numbers don’t lie and regular reporting creates accountability, that in-turn motivates people (well the right ones), to take action and work progressively towards achievement of goals. Remember ‘what gets measured gets done’.
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