20 Jun THE 6 REPORTS YOU NEED TO READ EVERY MONTH
Here is the essential list of reports you need to run each month in your business to measure the performance of your key drivers
1.Monthly sales report – To measure sales and gross margin %
2.Sales by customer – To identify profitable customers, loss of customers and incorrect pricing
3.Sales by product/service line – This will identify which products and services are popular and profitable.
4.Aged receivables – Will identify late paying customers, by keeping up to date you can chase up outstanding payments more quickly to ensure you stay cash flow protective.
5.Inventory on hand – This will tell you how much stock you have, it will identify slow moving stock, whether you are buying to much or if sales are declining for particular product lines. By keeping a close eye on stock you can avoid stock becoming obsolete by reducing quantities purchased and using promotions and specials to get rid of stock and improve your cash flow.
6.Aged payable – This will indicate whether you are meeting your payment obligations on time. If you can’t make payments on time this will be a red flag for cashflow and the longevity on your business. If there is a cash flow problem in your business it will require either more sales, improved customer collections, cost reduction or price increase to generate more cash into your business.