key financial reports and metrics for small business
Post on 12-Jan-2015
1.610 Views
Preview:
DESCRIPTION
TRANSCRIPT
www.BetterBottomLine.com
Key Financial Reports and Metrics for Small Business
Presented by:
Scott Gregory, Creator: “Beyond QuickBooks: Making Sense of Your Numbers”
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Complete Slide Deckis Available at
www.SlideShare.net
Search for QuickBooks
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Photo courtesy of EverystockPhoto.com – danperry.com
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Photo courtesy of Google Images
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Photo courtesy of Google Images
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Every business needs
a Scorecard
…otherwise, how do you know how you’re doing?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building YOUR Scorecard
Start simple Beware of paralysis by analysis Forget about the “tax” issues
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #1: Cash in the Bank• Pros?• Cons?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #2:Cash in the Bank
+ A/R – A/P
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #2: A/R = ?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #2: A/P = ?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #2: Cash in the bank + A/R – A/P• Pros?• Cons?
• Common Problems?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #3: Profit Report “How did we do”?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• Understanding it?• A major concern?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• Income• Cost of Goods (COGS)• Expenses
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• A major concern beforeusing this report is?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• “But my tax guy givesme this…”
• How often?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #4: Balance Sheet
• “What I Own…”• Understanding it
• Assets, Liabilities,Equity
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardMetric #4: Balance Sheet
• Is the data right?• How often?
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• A/R Turnover (how fast are you collecting?):
Net Sales / Average A/R
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Inventory Turnover (how fast are you moving inventory?):
Cost of Goods Sold / Average Inventory
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Average Sale per Invoice (excellent trending metric):Total Sales $ / Total # of invoices
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Gross Profit Margin: Gross Profit $ / Total Sales
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard“MBA Level Stats”
Profitability by product lineDebt to equityLabor ratiosMany others…
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your ScorecardCreate a “Dashboard” of
YOUR Key MetricsMakes it easy to spot trends
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building YourScorecard
Real LifeDashboardExample:
www.BetterBottomLine.com
Key Financial Reports and Metrics…
You do NOT have to be an accountant to use a scoreboard for
your business** - however, you may need help initially to help ensure your
data is correct and your systems are working properly
www.BetterBottomLine.com
Key Financial Reports and Metrics…
Just like your pledge to deliver great products or services….
Make a pledge to develop and monitor your business scorecard!
www.BetterBottomLine.com
12 Things Every QuickBooks User…
Questions? Comments!Scott Gregory
E-Mail: Scott@BetterBottomLine.comPhone: (440) 527-5696Web: www.BetterBottomLine.com
top related