Generation of custom reports is a basis of informed business decisions.
When it comes to business reports, it’s up to the business owner how much information they want and how they want that information presented. Information is power, and in business, it gives you the power you need to see every angle of your company.
Why would you need to see every angle of your company, you might ask?
The big, basic reason is to see if you are truly making money (which is kind of the whole point of working) and where. It’s very, very easy to get so caught up in the day-to-day minutiae of running your company and making decisions on the fly. But business reports — broken down correctly — offer a whole new perspective for an owner and that company’s future.
Think of business reports almost like a beautiful beach view. You can appreciate it when you gaze out from afar, sure. All looks good. But pick up a pair of binoculars, and maybe there is an area where someone’s littered, or seagulls fighting over a French fry. You may see a dolphin underwater or a seashell on the sand. You couldn’t have seen those details without the binoculars.
Customizing business reports does just that: like binoculars, it allows you to go a step further and see things in more detail. You can see not only how your company is doing in terms of profit and loss, but how various departments are doing in terms of profit and loss. Strengths and weaknesses become clear.
Customized business reports created with a qualified accountant will help you better understand your labor rates. They separate out the cost of goods sold from your company’s normal expenses, information necessary to see how much you are spending on the product or service you sell. Customized reports also help a business owner figure out profit margins and get a true picture of how the company is measuring up to its goals.
All this information is needed for decision-making purposes. Maybe you strengthen a department and refocus another. Perhaps you shop around for a new supplier. Options open up — but only after customized reports give you the true picture of each aspect of your business and its performance.