Keeping informed

Identifying profits and losses

Many businesses do not have adequate systems for identifying the amounts of profit or loss generated by different products and services, or even by the business as a whole, yet this information is absolutely essential if the business is to grow stronger. Similarly, it is important to know the costs of different areas of administration so that overheads are not allowed to swallow the profits made from gross margins. To keep track of where profits and costs are coming from, it is necessary to have a properly designed management information system able to provide all the essential facts quickly and accurately.

Timely information

Annual accounts are not enough to control a business. You must know what is happening to profits and losses on a much more regular basis. Most businesses need to produce operating statements at quarterly intervals at least and, better still, at monthly or even weekly intervals. There are even some businesses where daily financial information is essential.

Using information technology

Computers can provide fast and detailed information. The business owner can now choose from a very wide selection of small computers and standard accounting programs which, at reasonable cost, can produce most of the accounting and management information needed to run a business from day to day. It is important, however, to get independent professional advice on the suitability of a system for your particular business and to ensure that proper audit controls are provided. Increasingly, we are using new online and cloud based systems, which have extremely high levels of security and backup, as well as allowing access to the information from a variety of locations.

Consultinghouse UK

Klaus Schottler, CPA

Managing Director
Email me

Copyright Consultinghouse UK 2017
*Copyright Consultinghouse 2017. All services offered on this website are provided by Consultinghouse UK Limited. Consultinghouse UK is a boutique management consulting firm and professional services provider. Consultinghouse UK provides tax and management consulting as well as services with regard to accounting of current business activities, the generation of payslips, as well as the registration for payroll tax. For legal services please contact our cooperation partner