1. FINANCIAL CONTROL IN YOUR BUSINESS Know What Makes You Money
Know What Takes Your Money
2. DASHBOARDS A great business tool for small and medium
businesses
3. WHY ARE BUSINESS PERFORMANCE REPORTS IMPORTANT? Diagnosis
Relevant information gathering Breakdown of information Cure There
is not one fix Design and implement corrective actions Prevention
Use an on going monitoring regime
4. BUSINESS OWNERS CONCERNS Business owners have areas of
concern. Some common ones are: 1. Lack of bottom line profit 2.
Cash shortages 3. Identifying and reducing costs 4. Growing revenue
5. Growing the business
5. IF YOU CANNOT MEASURE IT, YOU CANNOT MANAGE IT How visible
is your business performance? Over 51% of owners do not review
their businesses performance Why? What are the most common reasons?
1. Do not have time 2. Do not understand the business reports 3. My
business seems to be tracking ok , why bother? 4. My accountant
looks after the business reports
6. Is this your end of month ? Do you have multiple sources of
data to try and understand?
7. A snapshot of a business cost report. Very difficult to
understand
8. M ar 14 Apr 14 Ordinary Incom e /Expe ns e Incom e Govt Subs
idy 2,500.00 2,500.00 Sale s (Sale s ) CNC 29,110.05 29,110.05
Engine e ring 27,877.56 27,877.56 Pum ps 30.00 30.00 Total Sale s
(Sale s ) 57,017.61 57,017.61 Total Incom e 59,517.61 59,517.61 Cos
t of Goods Sold Cons um able s CNC 3.59 3.59 Engine e ring 24.02
24.02 Gas 320.00 320.00 Cons um able s - Othe r 9,607.32 9,607.32
Total Cons um able s 9,954.93 9,954.93 Fre ight & Handling Fe e
s 1,036.40 1,036.40 M ate rials 32,880.48 32,880.48 Othe r M
anufacturing Se rvice s CNC 1,836.00 1,836.00 Othe r M anufacturing
Se rvice s - Othe r 4,245.94 4,245.94 Total Othe r M anufacturing
Se rvice s 6,081.94 6,081.94 Wage s CNC 20,041.58 20,041.58 Engine
e ring 26,745.00 26,745.00 Work s hop 5,944.08 5,944.08 Total Wage
s 52,730.66 52,730.66 Total COGS 102,684.41 102,684.41 Gros s
Profit -43,166.80 -43,166.80 Expe ns e Accounting Fe e s 555.00
555.00 Adve rtis ing 377.90 377.90 Com pute r / Office Expe ns e s
205.17 205.17 Cons ultancy 1,866.20 1,866.20 De pre ciation CNC
8,747.58 8,747.58 Eng 4,194.49 4,194.49 De pre ciation - Othe r
937.08 937.08 Total De pre ciation 13,879.15 13,879.15 Donation
48.00 48.00 Ele ctricity 3,109.02 3,109.02 Fre ight & Courie r
Fe e s 155.30 155.30 Govt. charge s (bad tax, s tam p duty, e tc e
tc) 0.10 0.10 Ins urance s 1,738.35 1,738.35 Inte rne t 111.52
111.52 Le as e / HP - CNC HAAS 5th axis + HAAS table 306.15 306.15
Ok um a LB300M C-SSB 397.82 397.82 Ok um a M ill M M 56VA-S15
683.07 683.07 Total Le as e / HP - CNC 1,387.04 1,387.04 Le as e /
HP - M otor Ve hicle s Am arok 120.62 120.62 M ultivan 145.68
145.68 Total Le as e / HP - M otor Ve hicle s 266.30 266.30 Le as e
/ HP - Office Equipm e nt SBS Se rve r Sys te m 119.22 119.22 Total
Le as e / HP - Office Equipm e nt 119.22 119.22 M agazine s &
Subs criptions 5,430.00 5,430.00 M otor Ve hicle Expe ns e s Fue l
& Park ing 1,107.72 1,107.72 Re gis tration & Ins urance
193.30 193.30 Every month same spreadsheet. Boring and difficult to
read.
9. Costs do not exist to be calculated. Costs exist to be
reduced Taiichi Ohno
10. DEMO DASHBOARD
11. USING THE DASHBOARD By using the information from the
dashboard functions, corrective actions can be applied to the
business Targeted cost reduction programs Marketing & sales
initiatives Supplier pricing performance Customer activity Stock
turnover
12. SOME COST EXAMPLES High labour costs to sales in particular
overtime Slow moving stock items High general business costs /fixed
expenses Low gross profit and contributing factors Compare actual
to budget performance Reduced sales, are customers dropping
off?
13. PREVENTION Monitor your business Regularly use the
information displayed Act on findings Review outcomes
14. DASHBOARD CONCLUSION Converts data into valuable
information Easy to read Simple visual graphics Filter capabilities
Great for report generation Saves businesses money If its data it
can be made into a dashboard