Page 11 - KFMS Your Own FD Ebook
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            It is critical that you are creating and extracting the right data from your business system

            Many businesses have insufficient processes and systems in place to record their true activity.
             When a business knows the reality of how it is performing, they at least have a platform to work
             from and can make decisions based on facts rather than speculation and anecdotal evidence.

            Not  knowing  the  facts  puts  owners  and  management  in  a  weak  position.  It  is  hard  to  make
             confident, strong decisions using poor data and reports. Without the right information, collected
             in the right way, effective analysis and clear planning is impossible. The importance of business
             reporting is:

                1.  To have visibility into the future (i.e. knowing what is likely to happen)

                2.  To be able to view past performance (i.e. for comparison with current performance)

            Well-designed and relevant business reports are the secret weapon for businesses with ambitious
             growth plans.

            Questions that will be asked by an FD are:

                •  Do you know which of your products and customers is the most profitable?

                •  Do you know where your break-even point is?

                •  Do you know how effective your team is at controlling costs?

                •  Have you set annual and monthly budgets?


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