…so they could manage where you are going, not just where you’ve been.
My last post link highlighted Direct Costs (‘cost of sale’) as vital to identify and separate to see the true viability of every proposed product and service. I then subtract these from the sales value per product budget to produce a Gross Profit projection. This is the true income of the business, so I ensure that the bookkeeping system is structured to capture and report this with total accuracy as we progress through the year.
I then submit the projection to the business owner for approval.
My next post deals with Fixed Overheads budgeting as the determinant of next year’s Net Profit.
Meanwhile, if you don’t have a FD, call me. I’m a fraction of the cost, and I work on the basis that every £1 you invest in me delivers at least a £3 return.
We are Accountancy and AI Business Advisor®s specialists, building high performance for ambitious owner-managed companies.
