Success in business can take on multiple meanings. | Success could mean selling a certain number of products, expanding your business by opening a second store, or even reaching a revenue of $400k each year.

Whatever it may be, success is unique to your own business plans.

However, what all businesses DO have in common is the need for an effective strategy to achieve success. An effective strategy is based on the strong understanding of the accounting aspect of your business, that is, through the creation of strong business management reports. Business managements reports allow you to both reflect upon your business performance and manage its financial health.

The main areas that the report covers are:

• Profit and loss

  Looking at items like your top sales, the gross profit margin after those sales factoring in the costs, as well as other operating expenses (e.g. wages).

• Balance sheet

  A report reflecting on company assets, liabilities, and shareholder equity.

• Cashflow

  Considering that profit doesn’t always equate to cashflow, cashflow is an essential element to review. Your cashflow identifies how much your current assets are, especially as affecting liquidy.

• Payroll summary

  This summary outlines business transactions, with a quick snapshot on what is happening in your business. The summary may include superannuation, payroll tax, and other workers requirements which all need to be paid on a timely manner. Having a snapshot of what is happening can help you keep those admin tasks in check.

So, there is certainly a whole lot to consider when mapping out a long-term strategic plan for your business, but what benefits do you get out of it?

Preparation of management reports allows you to structure your tax planning to identify estimated profits. It provides a proactive rather than reactive approach to prevent any unnecessary losses and expenses, and potential opportunities to lower your business taxes. The data gathered also helps in discovering trends in your market to plan for changes in your business over time.

Essentially, management reports are the roadmaps to your business success.

However, we acknowledge that setting up an effective business management plan is not an easy task which is why setting up quarterly or bi-annual meetings with your accountant is essential in keeping your business on track.

Our WSC Group accountants are experts in small business advisory. We add value by assisting your business in formulating a clear vision, identifying a sustainable competitive advantage, and developing and implementing your own effective strategic plan through regular business management meetings.

If you’d like to get in contact to understand more of how we can help you and your business, please give us a call on 1300 365 125 or email us at info@wscgroup.com.au.

We’re eager to assist in paving the way to your success.