Obtaining better financial control

The importance of monitoring projections and results.

At MRO Accounts we can provide businesses in the Hemel Hempstead area with help and advice on financial control, forecasting and cash flow.

As a businessperson you will recognise the vital importance of financial control in sustaining and improving profitability.

Good financial control involves:

  • Deciding which areas you need to monitor and how frequently
  • Generating the numbers quickly and accurately
  • Sharing the results with everyone who needs to know them
  • Interpreting the numbers correctly
  • Taking appropriate and timely action based on your interpretations

The starting point is to set up a system that enables you to generate accurate reports as quickly as possible - certainly no later than ten days after the month closes.

To be fully in control, you need information on what is happening to your business now, not what happened weeks or months ago.

Weekly and daily updates

In key areas, such as sales, debtors, cash position, trade creditors, and employment figures, you can't afford to wait even for a month. Here you could consider setting up a system of weekly or even daily updates. These 'flash reports' will give you better control in the short term.

Make sure key managers receive the flash reports as well as the monthly reports quickly, and encourage them to share the results with the relevant employees.

Compare projections with results

One of the most valuable instruments of financial control is drawing regular comparisons between projections and results. Not only does this keep you up-to-date on how your business is doing, it also reveals how realistic your expectations are and how in touch you are with the essentials of your business.

For best results, you should draw up projections for a six-week period and then set new projections at the four-week point.

Bottom line results

The key to good financial control is to have an effective system for collecting data and generating accurate and timely reports that is tailored to your specific needs. In our experience, such a system can make a considerable difference to your bottom line results.

If you are in the Hemel Hempstead area and are looking for advice on financial control, forecasting or other aspects of your business, contact MRO Accounts.

What our clients say:

“Working with Melody is an absolute pleasure. She handled my accounts with complete unflappable professionalism and navigated her way thought the HMRC hoops. In my first year of business I was employed, unemployed and self-employed, all within 12 months - not a simple situation! And she does it all with a smile :)”

Thank you Mel, you let me get on with my job confident that my accounts are in safe hands

Dee Fagg, 3D-VA

“I have known Mel for 6 months and in that time she has managed to totally organise my accounts and make me company be more efficient, what used to take me a long time, takes her a very short time, she makes it seem easy and is able to make me understand what I should be doing and the easiest way of doing it! My accounting life is now so easy not a time to be dreaded!! Thank you Mel!”

Claire Lee, Venue Queen Ltd

“MRO Accounts have been very helpful in the early stages of getting my business started, with clear advice and guidance that has really helped me sort my finances out. MRO Accounts have always been very prompt and speedy in dealing with any of my queries, which is very important to me and gives me every confidence that I am dealing with professionals. I wouldn't hesitate to recommend their services.”

M Hamilton
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