Segment reporting is all about breaking your business down further to provide greater clarity on performance and areas that need to have increased attention.
It is all well and good to invest the time and resources into establishing a clear costing structure, but just having this in place is not enough.
Divisional performance reporting will take your financials to another level, providing you as the business owner more visibility than ever. Having financial information at this more granular level breaks your business down to more manageable bite sizes, while also allowing for accountability and key performance indicators to be placed with key management instead of resting with you. You have enough to try and manage!
You can't afford not to have Divisional Radars scanning your business to identify potentially costly "Business Blips". We often find that through the implementation and monitoring process that it helps raise questions around what things are the way they are, which in turn creates positive business changes.
Many businesses don't understand the distinction between standard business accounting and the specifics of project based accounting, so they don't understand the power that project accounting can offer.
Standard business accounting tracks the totality of expenses and revenues across the corporate entity and is usually performed on a fixed-time basis (such as quarterly, monthly, annually). Project based accounting, however, monitors the financial and other activities of an individual project to ensure that it is delivered on time and within budget. Benefits gained from using project-focused accounting are numerous and include:
- Because project accounting records incremental, day-to-day expenses and revenue, it provides critical and immediate information about where the project is succeeding, and where it is not
- When properly structured, project accounting can provide comprehensive oversight of all aspects of the project, from labour and materials to time delays and contractor issues. Because data aggregates on a daily basis, both on-site management and you as the business owner can make appropriate decisions in a timely manner
For that next big project make sure you speak with the team at Synergise My Business to ensure that you have accurate information and full visibility throughout the process.
Almost every business owner need help improving both sales as well as productivity. How do you achieve greater sales with increased efficiency and how you subsequently measure it? There are many formulas out that state the obvious, however, it is essential that for any business to succeed they need to be accurately measured.
Just because you are seeing an increase in sales doesn't necessarily result in a positive result for your business, and the same can be said for a decrease in your overall labour input. Understanding your drivers and being able to convert information into a user friend format is key to not only understanding how your business is performing, but to be able to assign accountability to key management positions.
Implementing these radars to scan out across your business and provide accurate and timely information is essential to the overall success of your business. Our Business Success Partners have both the tools and knowledge to implement this reporting for you.