Often, owner-managed businesses don’t get regular and accurate management information in a format that allows informed decisions to be made. Sometimes decisions are made based on incomplete or outdated information, and the consequences of this can be catastrophic:
- costs can be spiralling without this being noticed for some time
- margins can be under pressure without this being identified early
- early warning signals and trends in a number of areas may not be picked up
- opportunities for strategising and planning can be lost
- growth can be unstructured, stressful and potentially destructive
We implement a two-stage process to help businesses owners feel more in control of their businesses, have a greater chance of survival, and make more money.
Firstly, one of our consultants gets involved in the accounts department of the client, and implements systems and training to make sure that management accounts are prepared regularly, and that when they are prepared, that they are accurate (that the information presented is factually correct), timely (presented shortly after a reporting period (month or quarter) ends), and relevant (provide information in an understandable format that is helpful and useful to making decisions).
Secondly, the consultant meets with the client, either monthly or quarterly, to go through and interpret the management information, which has already been interrogated for accuracy by the consultant, and to assist the client to make and implement decisions arising from the financial position set out in the management accounts.
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