Small Business Analytics and Metrics: How and What Do you Measure Up?
Key financial reports and metrics for small business
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Transcript of Key financial reports and metrics for small business
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Key Financial Reports and Metrics for Small Business
Presented by:
Scott Gregory, Creator: “Beyond QuickBooks: Making Sense of Your Numbers”
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www.BetterBottomLine.com
Key Financial Reports and Metrics…
Complete Slide Deckis Available at
www.SlideShare.net
Search for QuickBooks
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Key Financial Reports and Metrics…
Photo courtesy of EverystockPhoto.com – danperry.com
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Key Financial Reports and Metrics…
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Key Financial Reports and Metrics…
Photo courtesy of Google Images
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Key Financial Reports and Metrics…
Every business needs
a Scorecard
…otherwise, how do you know how you’re doing?
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Key Financial Reports and Metrics…
Building YOUR Scorecard
Start simple Beware of paralysis by analysis Forget about the “tax” issues
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Key Financial Reports and Metrics…
Building Your Scorecard
Metric #1: Cash in the Bank• Pros?• Cons?
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www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #2:Cash in the Bank
+ A/R – A/P
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #2: A/R = ?
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #2: A/P = ?
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Key Financial Reports and Metrics…
Building Your Scorecard
Metric #2: Cash in the bank + A/R – A/P• Pros?• Cons?
• Common Problems?
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www.BetterBottomLine.com
Key Financial Reports and Metrics…
Building Your Scorecard
Metric #3: Profit Report “How did we do”?
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• Understanding it?• A major concern?
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• Income• Cost of Goods (COGS)• Expenses
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• A major concern beforeusing this report is?
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #3: Profit Report
• “But my tax guy givesme this…”
• How often?
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #4: Balance Sheet
• “What I Own…”• Understanding it
• Assets, Liabilities,Equity
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Key Financial Reports and Metrics…
Building Your ScorecardMetric #4: Balance Sheet
• Is the data right?• How often?
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Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• A/R Turnover (how fast are you collecting?):
Net Sales / Average A/R
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Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Inventory Turnover (how fast are you moving inventory?):
Cost of Goods Sold / Average Inventory
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Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Average Sale per Invoice (excellent trending metric):Total Sales $ / Total # of invoices
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Key Financial Reports and Metrics…
Building Your ScorecardTaking it to the next level…
• Gross Profit Margin: Gross Profit $ / Total Sales
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Key Financial Reports and Metrics…
Building Your Scorecard“MBA Level Stats”
Profitability by product lineDebt to equityLabor ratiosMany others…
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Key Financial Reports and Metrics…
Building Your ScorecardCreate a “Dashboard” of
YOUR Key MetricsMakes it easy to spot trends
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Key Financial Reports and Metrics…
Building YourScorecard
Real LifeDashboardExample:
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Key Financial Reports and Metrics…
You do NOT have to be an accountant to use a scoreboard for
your business** - however, you may need help initially to help ensure your
data is correct and your systems are working properly
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Key Financial Reports and Metrics…
Just like your pledge to deliver great products or services….
Make a pledge to develop and monitor your business scorecard!
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12 Things Every QuickBooks User…
Questions? Comments!Scott Gregory
E-Mail: [email protected]: (440) 527-5696Web: www.BetterBottomLine.com