What financial information do I need as my business grows?
As the business grows, you need regular information on revenue, gross margin, overheads and profit, ideally compared with budget, forecast and previous periods. Growth in sales without growth in profit isn't necessarily good growth.
Know how the business is performing now
As the business grows, you need regular information on revenue, gross margin, overheads and profit, ideally compared with budget, forecast and previous periods. Growth in sales without growth in profit isn't necessarily good growth.
Keep a close eye on cash
Monitor cash, customer debts, supplier commitments and stock where relevant. Growth often increases the amount of money tied up before customers pay you.
Track what is driving the result
Add the few non-financial measures that explain the results: utilisation, jobs completed, recurring revenue, average order value, staff productivity or another measure relevant to your model.
Look at what is coming next, not just back
Historic reports tell you what happened. A growing business also needs budgets and cash forecasts so recruitment, investment and funding decisions can be made before the commitment is made.
Outsourced Finance & Bookkeeping
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