Information received at the right time is critical to making the right decisions in any walk of life. But, before you make any decisions about your business, you need to first understand what’s happening in it now. For example:
How are your sales being generated, and which customers, products and services are most profitable?
How much are you spending on marketing, and are you getting value for money from it?
Of your costs, which are fixed and variable, which could be deferred?
The first step is to ensure that you’re getting regular and meaningful management accounts along with detailed comments, and highlighting anything that needs further investigation. This is the foundation. We should also set up regular reporting of your Key Performance Indicators (KPIs): those measures that tell you and your staff how well you are performing.