Having an overall picture of how your business is performing financially is essential.
I’ve worked as a Finance Manager and Financial Controller in a number of businesses. Reporting and analysis of financial and management information was a key part of my role. I’ve noticed that businesses sometime struggle to put this information to good use.
To help with this, I’ve put together a webinar. In the webinar you’ll learn how to read your management reports. It will also show you how easy it is to interpret the financial performance of your business.
So why should we produce Management Reports?
While it’s important to produce Statutory Accounts to meeting your legal requirements, this does not give you the timely information you need to manage your business.
We are all guilty of getting caught up running our business and not standing back and asking those important questions. Things like ‘which parts of our business are the most profitable?’ ‘was it a profitable month or quarter?’ or ‘how have we performed against our budget or plans?’
The upside of knowing how to review your Management accounts is enormous. In the webinar, we explore some of the consequences of not reviewing your performance throughout the year. For example, poor management of your cash flow may mean you can’t meet payment deadlines.
From experience I find managers often confuse cash with profit. We explore the different ways you can produce a cash flow forecast and what the key differences are between cash and profit.
Xero makes the review of your business easy
In the webinar we discuss preparing a budget and using it to see how the business ‘stacks up’ against the plan you’ve prepared. I find many people are scared of the budgeting area of Xero. They think it’s something really hard to prepare – it’s NOT! A budget gives you the ability to plan and then assess your ongoing performance.
The Management Reports within Xero are one of my favourite features. It combines the basic reports such as Profit and Loss, Balance Sheet, and Debtors and Creditors. Xero gives it you in a format which can be used to assess and discuss performance in your monthly or quarterly management meetings.
If you have the Accounting resources within your own firm, you can produce these reports yourself. If not, ask your advisor to assist you.
The webinar explores how to read these Management Reports. I also explain some of the common jargon accountants use that makes understanding these reports not so easy! We also look at the some of those useful ratios that help us unlock the gems of information in our Balance Sheet.
We also discuss features in Xero like Tracking. Tracking allows you to understand what parts of the business are performing and which aren’t.
After joining in on this webinar you will be able to apply the learning to your own business and get even more value from Xero.
Maree is a Xero training partner and Certified Xero Advisor. She is also a qualified Chartered Accountant and a member of the ICAEW, with an MBA and Bachelor of Management Studies (Hons). She has expert knowledge of Xero & WorkflowMax and has carried out many Xero implementations across a range of industries. Maree has also delivered several courses as Surrey Adult Education Centre including “Bookkeeping” and “Start Your Own Business”.