We hope that last week’s post gave you some pause for thought. In the coming weeks we will ask some simple questions that every business owner should be able to answer, ranging from operational right up to strategic.
The very first question that we ask when we sit down with a new client is ‘How did your business perform last month and how is it performing in your current financial year?’ In order for us to understand the answer we need to dig a little deeper. Listed below are some basic questions.
- The top-line numbers we are expecting to hear will be sales and how they compare to the previous year, ie. Are they up or down?
- Gross margin and how this is performing relative to the previous year?
- Operating/overhead expenses – can we explain any significant shift in these under the respective headings?
- Current cash tied up in stock?
- Current debtors position & cash collection target for the coming month?
- Bank position?
- How are we performing with our creditors?
- What are our various tax liabilities?
However, it is our experience that most small businesses cannot answer all or indeed any of the basic questions outlined above, before working with Aurora Accounting & Business Services.
Have a listen to what one of our clients has to say!
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