I know that you are a small business owner. It goes without saying that you need to know whether your business is profitable or not. You need to be aware of how much cash your own business is making. You should also know how far it’s possible for you to extend yourself in credit with your suppliers and vendors. I suppose that you’d like to have rather a detailed snapshot of your business performance. This can greatly help you to get more funds from bankers for expanding your activities. Reporting is a very important facet of running a small business.
The primary business report you really require every month is certainly your monthly profit as well as loss account. It’s usually prepared for one month period for monthly accounts and accordingly a three month period refers to quarterly accounts. The loss and profit accounts show how your sales are converted to your profits.
Of course you know that revenue can be defined as the amount of sales made by you to your customers. I should stress that your revenue figure will become a net figure if you account for sales discounts as well as any allowances that you’ve already afforded your customers. Of course every sale will be supported by a corresponding customer invoice detailing a particular type of product sold. A gross profit figure appears right after deducting the costs attributed to your sales. A gross profit margin appears when you divide the gross profit with your sales figure and as the result you’ll see the exact percentage of profit derived from sales to customers.
I’d like to add that expenses shown in your profit and loss account should be defined as the expenditure you’ve just incurred in the course of your business operations. Of course this expenditure is attributable to your business activities. And it includes administrative and general expenses such as utilities, insurance and certainly salaries. This expenditure is required to manage your business. By the way I should also mention selling expenses. They are accordingly commissions, travelling, advertising incurred to sell services and products.
As for the net profit figure I can say that it’s the total profit made by your business after deducting the relevant expenditure. So exactly this figure is responsible for determining the profitability of your business. If your business suffers losses, then it’s possible to analyze your expenses in the loss and profit in order to find out which of your expenses is the main contributor to your loss. I should say that high net profits often predict strong future profits and you should use this useful nuance in your business to my mind. It’s also possible to assess whether your business is able to generate a sufficient cash flow in the nearer future or not. In this case you only need to look through your loss and profit account to assess this. I hope you’ve just learnt enough from this review.
Today we are living in the world of high technologies. These days the more your work flow is automated, the better, particularly in respect of Reporting Services. Reporting is a very helpful thing. So if you want to automate your reporting activities, you might think of using SSRS solution. Having reporting automated will lead to minimizing manual process and saving time and money. Look through this SQL Reporting Services site to find out more detailed information.
And keep in mind that we live in the world of high online technologies. It would be intelligent to use the web network to look for anything on the best terms available on the market. Search engines, social networks, blogs and forums – all this will help you make a decision on many issues.