Having the proper systems to monitor how your business is doing is vital. Many businesses fail to keep their records up to date and fail to realise there is no cost-saving in this and it almost inevitably leads to lost revenue or increased costs. Having the ability to get up to the minute vital pieces of information concerning sales, costs, cash situation and stock value is critical. This requires installing and maintaining the proper systems & procedures which will save money in the medium term. With the proper systems business owners should be able to calculate their profit & loss account on a weekly basis. Monthly, bi-monthly or quarterly management accounts as required should be done and these will highlight any unforeseen issues from the weekly estimates. Many successful businesses operate on the maxim of ‘management accounts – managing your business.’

See our papers on ‘Knowing exactly how much profit you are making’ and ‘Having key measurements to help you run the business better’.