At BAS Associates, we are passionate about keeping our clients informed about their financial understanding and how to monitor their performance in real time, particularly in these difficult times. For many, times may still get tougher as the fight to recover from different levels of inactivity finds cracks in the return-to-work armour.
Financial awareness is key to maintaining a successful business, and Lockdown has made that an even greater challenge.
Business Unusual is the new norm, with Covid-19 affecting the priorities and behaviours of you, your clients and customers and the world around them. Revenue streams have also had to evolve and be re-assessed in order to create a viable post-lockdown business model.
The new business world is demanding improvements in the way we track, trace and monitor our financial performance, and it’s increasingly important to have a grip on the key reports and metrics to ensure a successful outcome for businesses, owners and our families alike.
Getting to grips with financial reports
Cash is king, and while nothing could have properly prepared us for the financial strains of the current situation, Covid-19 has highlighted the need to analyse the need for extra cash in our business rather tan an opportunity to spend or invest, or to use for remuneration. Cash reserves are vitally important for the survival and long-term health of businesses.
Let’s look at the key reports to focus on:
- Cashflow Statement This shows the flow of money into and out of your business. Understanding these aspects in detail allows you to manage this ongoing process, giving you guidance on achieving a positive cashflow. This is just part of the management package which BAS Associates can help you with so you can concentrate more clearly on the challenges ahead.
- Cashflow Forecast This will allow you to view your historic cash data and project them forward in time. This may well highlight cashflow hole sand to prepare you to take action days, weeks and even months in advance. Options can then be analysed, whether that’s reducing some underlying costs, increasing the income stream, improving your debt-chasing or borrowing cash to see you through.
- Budget Alongside your strategy plan, this is a very effective document to tie in. in summary, a financial budget will be used as a basis for your understanding of the money it will take to achieve your strategic goals alongside the amount of income and profits you will hope to make during this period. It is a document that should be used to measure your actual numbers against, giving you the opportunity to assess the gaps and successes to amend your systems for the next period.
- Profit & Loss This process and document gives you an overview of your company’s income, expenses and costs over a given period of time, usually yearly but sometimes more frequently if more up to date information is desired. Required if you run a Limited Company, your P&L details your business transactions, subtracting the total outgoings from the total income to show how much money has been made or lost.
- Balance sheet This shows quickly what the company is owed, owes and it’s solvency by analysing the assets. Picture the balance sheet as a still image, and the P&L as a time limited video.
Talk to us about the value of financial reporting and accounts in your business
There’s plenty of value having up to date reports which will help you understand the current financial position of your business. Information is key in supporting your decisions regarding tracking performance, taking action and preparing your company for surviving the new business normal.
For a complimentary Discovery Call to discuss the most appropriate level of support on a wider basis, a personalised quote and a guarantee of our best possible service, please complete the form below and one of our senior advisors will contact you.
Or if you prefer, please call 01296 681341 for our Wingrave Bucks Accountants office.
