For a business to improve and grow it must have access to simple, concise and accurate records.  From these records Key Performance Indicators (KPI) can be developed to help determine how and where a business can improve and grow.

Traditionally accountants have assisted small business with their financial statements and income tax returns.  With the development of real time reporting through accounting software packages such as Xero, MYOB and Reckon, business owners have access to up to date financial information on which to base their business decisions.

If you are a small business and use cloud based software including bank feeds then business advisory could greatly improve your business performance.

Most businesses would like to improve in the following areas:

Revenue Growth
Profit Improvement
Cash flow Improvement

Revenue Growth:  This is a measurement of how well an organisation grows its fee / sales base.

It is calculated by taking the difference between the current sales amount to the previous sales amount and dividing by the previous sales amount.
 

Profit Improvement: Effectively what is left over after paying all your expenses.

What is available for the owners / shareholders of the business.
 

Cash Flow Improvement: A healthy cash flow is vital to the viability of a business.

The Cash Conversion Cycle (CCC) measures how long it takes for a business to convert its resources to cash.

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If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com
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