Accounting

Reporting

You should pick five things to follow daily and weekly in your business operations. These five indicators will keep you up to date on how your business is doing and developing.

Number of sales

When you track how many sales there have been in a week, for example, you are at the same time tracking your company’s success in dealing with customers and your possibilities to make a profit.

Estimate of future invoices

It is pretty certain that an invoice sent out today will get the money into your account after about two weeks. But what then? A good way to ensure the continual inflow of money is to monitor the amount and probability of incoming business:

  • How many offers have been made lately?
  • How likely is it that the offers made are accepted?
  • How many of the orders have been delivered?
  • When can they be invoiced?

Sales margin on completed sales

By setting yourself a goal for the sales margin to be achieved in a week, you will remain focused every day on the amount of sales to be made in order to turn a profit. Even just a single transaction a week can be enough if the sales margin is sufficient.

Number of contact events

By tracking the amount of correspondence, you’ll follow the effort put into reaching potential new customers. You will also ensure, that you won’t forget about your existing customers

Amount of positive feedback

If the quality of your work is good enough, your customers will spread the word about your business. How can you be sure that this is happening? Through positive feedback.

How many times has a customer said they were happy with the quality of your work?

A tip: Use only the indicators that will help you to improve your performance when growing them. The indicators should not only indicate how things have gone so far, but also what is still to be done.

Accounting

Accounting

Not only important. Compulsory.

Every entrepreneur has an accounting obligation defined by law. In other words, every entrepreneur is responsible for arranging the accounting of the firm.

Simplified it requires to:

  • Keep track of sales and purchase invoices
  • Follow receivables and payables
  • Make a yearly summary of business accounts
  • Notify the authorities of your dealings

It is worth hiring a professional accountant and outsourcing the accounting already at an early stage so that you as an entrepreneur can focus on the sales and growing your actual business.

A recommended way to do the accounting as smooth as possible is to send clear and complete reports of your sales, receivables and expenses. When you deliver all necessary reports, receipts, and other documents on time and in a clear and unambiguous form, your accountant is not only happy but will also charge you less. In other words – being consistent and clear with your reporting saves you both time and money.