To achieve your personal dreams and ambitions you need to know financially what your business needs to deliver.
This will not just happen, you need –
Working out how much money you need from your business to give you and your family your dream life –
Now you know how much after-tax money you need from your business you need to work out a plan your business has to deliver.
Focus on the Profit & Loss Account and cashflow forecast.
You already know the Profit after tax so work backwards from there. Gross up this figure by the business tax suffered at that level to give profit required before tax.
Then add your general running costs (Overheads).
This will give you the Gross Profit required.
Look at previous years sales and cost of sales to find out the sales to cost of sales percentage (Gross Margin).
You already know the Gross Profit required so you just need to work out sales required to give you your desired Gross Profit after deducting Cost of Sales.
You now need to work out a plan that will deliver those sales and profit figures. THE PLAN.
To ensure your business can afford the plan and will not run out of money you need to generate a 12-month, monthly cash flow forecast.
Once you have your plan in place you need to periodically review it, check actual figures against the plan, analyse the difference, why did the difference happen, do I need to change my plan going forward?
Of course there is a lot of work involved. To give you the best chance of achieving your personal dreams and free you up to run your business BKPS offer our Virtual FD package.
We have options to suit all businesses and budgets. To have a free no obligation discussion about how BKPS can help your business achieve your goals, please contact us.