We all want our businesses to be successful, though sometimes it is hard to pinpoint where you may be going wrong or how. Managing and evaluating your business is part of the daily requirements to keep the business train ‘chugging along’. So when it comes to evaluation time, reporting accurately the first time around can give you a clear indication of how to move forward or where to cut back.

It is with this in mind that we, here at Calxa, have devised a simple plan to make reporting and evaluating that little bit easier – a starting point if you will; We give you the ‘Top 3 management reports for a Successful Business’.

1. Budget Summary Report

The Budget Summary Report, is one of the best reports for measuring your past performance, comparing actuals and budgets for a selected period of time, literally report summarising the performance of actuals versus budgets – hence the name (subtlety is overrated, right?). You can include KPIs to provide extra information beyond the traditional Profit & Loss format.  For a business, try the Budget Summary template (this includes a comparison to Last Year as well) and Not-for-Profits should try the Budget Summary (Unspent) template as this also includes the Full Year Budget and shows what is left to spend. Told you this would be helpful, but wait there’s more…

2. Cashflow Forecast

Cashflow Forecasting is imperative in evaluating one’s business. Through utilising this report you connect your Profit and Loss Statement with your Balance Sheet and clearly understand where and how your cash is moving throughout your business. For a quick and easy method use the Cashflow Forecast chart on Calxa to get a quick overview of your predicted cash position for the next 12 months. From this report you can see in advance any potential problems and take immediate action to avert them.

3. Where did our money go?

This report provides clarity in understanding the link between your Profit & Loss Statement and your Balance Sheet. It’s not always obvious but finance is about more than the Net Profit and the bank balance. This report will help you understand the connection between those two, showing you what else has changed in your balance sheet. The best part of this report? It will explain how making a profit does not always translate to having cash in the bank!

The key to a successful business is in the recipe (the details, if you will). A lot of hard work, a splash of tenacity, combined with timing and customers, and finally a cup of cash to taste. As we all know it’s important to taste test throughout the cooking process; this is just as important as the ingredients. Taste testing is the reporting and evaluating aspect of business, you need to constantly check that everything is in balance otherwise the cake (business) may look amazing but taste horrible (there may be no money to support it). The Top 3 Reports for a Successful Business are formulated to make the reporting and evaluating process that much easier, because you can’t afford not to.