Predicting the financial future of your business

“We’re working harder than ever but don’t seem to be any better off!”

It’s a common complaint that we hear from business owners who often struggle to explain why profits are down even though revenues are up.

Or they suddenly realise they’re about to run out of cash despite having plenty of orders and customers coming through the door.

But it can be difficult to know how to improve your performance and spot issues before they arise if you don’t have a clear understanding of your finances. The problem is that most business owners don’t have time to spend analysing dull spreadsheets to work out what’s going on.

At Richardson Swift we’re using the latest cloud-based forecasting technology to provide our clients with a visual snapshot of vital data about their businesses when they need it.

With CrunchBoards we can help you monitor Key Performance Indicators (KPIs) in real time and plan for different scenarios. We can pull this information from your accounts and present it to you as simple dashboards.

So if crunching numbers isn’t what you do for a living, you can still see what’s happening in your business on a daily basis. One of our clients is now able to share vital information about profits and turnover with his staff so everyone in the company can see what’s happening.

We can provide you with KPIs that are tailored specifically to you and your business. If you run a hotel or restaurant, for example, this might include things like average spend per customer, food and drink margins, and short-term cash flow.

Armed with this information you may discover that profits are down because you have kept prices low in a bid to attract more customers. Perhaps you should be looking to increase your margins instead.

We can also help you spot cash flow problems before they happen so that you can take appropriate action in good time. This may mean having to review your payment terms and getting tougher with late payers. But if you leave things too late you could find yourself overdrawn at the bank or worse.

We can also prepare financial forecasts for you using CrunchBoards and monitor whether you are on course to achieving them. You no longer have to wait until the end of the year to find out what your annual profit is looking like. The information is always at your fingertips.

And we can help you answer those difficult ‘what-if’ questions that all businesses owners face when making important decisions. What will happen if you put up your prices? Can you afford to hire more staff next quarter or move to larger offices?

By using the latest technology to test different scenarios we can see clearly what additional turnover you might need to cover these extra costs. Or you may find that you will have enough cash available to pay for this.

But without having such information readily to hand you may struggle to build the business you have always dreamed of creating.

For more advice on growing your business please contact Debbie Boulton