Getting the Numbers Right with CAD Partners CFO On Call

There is an old saying “If you aim at nothing you will hit the target with amazing accuracy” according to CAD Partners CFO On Call . The finance advices franchises recommends business owners to consider their financial results of this year and set goals on what to achieve for the next year.

If businesses want to improve results, the best way to achieve this is by setting a target to aim for and a system for monitoring the progress.

CAD Partners also helps list out a few key issues that business owners can consider and get control of:

Compare Results: A budget offers businesses actual results to compare against in order to determine if margins are slipping and if corrective action needs to be taken. Businesses should also consider having a regular procedure that checks income and costs are still on track.

Identify Overspending: Without a monthly budget, businesses might find out too late when they have overspent on some items. This could costs potential lost in profits. A monthly budget can help identify overspending quickly, which can then be taken into action.

Spending Limits: A budget lets staff know there are limits on spending. A ‘Purchase Order’ is a valuable tool that helps manage staff spending, particularly for items over $100. It is a form that requires a senior manager to authorise before order placement. This helps keep budgets within their limit and monitor its spending at the same time.

Resources: It is important to match the outgoings with the income and plan resources that would be necessary. A budget helps plan what resources will be required to achieve the sales plan.

Funding: To acquire a new business funding or ‘roll over’ current lending, a business will definitely be required to produce a budget and a business plan. A lending institution needs the confidence that a business has ‘thought through’ their plans and funding requirements

Break-Even: Most businesses should know what their direct costs and overheads are, which helps make it possible to calculate the “break-even” point. When a businesses are managed to a ‘break-even’ point, any extra profitable sales will be considered a bonus.

CAD Partners CFO On Call offers business advice services to help plan for improved profit, cash-flow and business value. For more information, visit their website or fill out the form below.