Unlock Your Business Profit – Part Three
Welcome to the last component of our series – 5 Key numbers to unlock your business profit. Today we will discuss working capital days and also introduce Spotlight Reporting.
Working Capital Days
Profit needs to turn into cash, and that is why we will also be measuring our Working Capital Days.
Working capital days is an interesting metric – and it can be broken down into a few components. What this means is that working capital days measures the number of days between you paying for your cost of sales, and receiving payment from your customer.
So if we increase Payable Days, and reduce both Work in Progress Days and Debtor Days, this will reduce working capital days and improve our business’ cash flow.
Calculating Working Capital Days
As working capital is made up of other figures, we’ll need to work out what the following numbers are:
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Payable Days also referred to as Creditor Days
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Work in Progress Days or Average Stock Days
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Debtor Days
Spotlight Reporting
What is it?
Essentially, it is a cloud application that allows you to easily create attractive, useful performance reports for your business. Spotlight is a great mix of visuals, data and analysis.
The key to success is having a great team, happy customers and clarity in your numbers. Spotlight is ideal for both small and large businesses. It provides a roadmap to illustrate where you have been and where you are going financially as you have deeper insight into your cashflow.
Who will benefit from Spotlight Reporting?
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Business owner – Businesses of all forms use Spotlight Reporting to achieve clarity which impacts the quality of your decisions.
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Franchise – Gain clarity of the franchise and also the performance based on financial and non-financial data.
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Not – for – profit – Manage your funds effectively and efficiently. Spotlight Reporting is accessible, visible and easily understood.
Watch the video below to learn more about Spotlight Reporting
For more information check out the Spotlight Reporting website.
Over a decade Success Accounting Group has partnered and worked with over a thousand business owners and we know what key numbers to look at that can take your business to the next level of PROFIT.
So book a 15 minute Chat to review the 5 numbers of your business with our Financial Coach Lan Nguyen.
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
To see how you too can benefit from working with us, request your FREE meeting today. Enter your details in the form on the right, or phone us direct on 03 9583 0550.
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Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
