Identify Profit Centres
Identify issues leading to lack of sales
Setup systems to track sales
Manage ‘non financial’ KPIs that drive sales
SALES ARE GREAT…
But if they’re not ‘profitable sales’ they will only lead to frustration and eventual cash flow problems. The key to making profitable sales, is to balance charging the right price for your goods and services, as well as managing the costs and overheads to ensure your revenue doesn’t disappear into other peoples’ pockets!
Sales & Profit Improvement and Reporting
This means customised reporting and a properly set up chart of accounts in your system. A good CFO can easily set this up to give the best insight.
Many business owners focus lots of attention on making sales. This is great, but if they’re not profitable sales, the benefit can be lost by the time any of it gets to the bottom line. Not enough focus is given to cost and overheads management. Often more focus on these can have a much bigger impact than selling more!
Sales can be increased by other methods than just selling more stuff to the same people. They can be increased by analysing competitor pricing and introducing regular price increases. They can be increased by proper calculation of markup and margin… a very common mistake that has a bad effect on not just sales but profit too.
‘Non Financial KPIs’ are vital to increased sales. A CFO can help you to determine what they should be and set up systems for tracking and reporting.
Increased sales are generally driven by a set of ‘non financial’ KPIs, such as marketing activity, leads generated, opportunities/appointments generated, sales conversion rate etc. Setting up the system for measuring, reporting and managing such KPIs is easy for a CFO who can set up the data capture method and formulas to calculate the KPIs.
We have an understanding of our business like never before! We now have accurate Key Performance Indicators (KPIs) which means we can make informed business decisions and grow the company profitably at every turn.
Warwick Glendenning, CEO
Power Systems Consultants Group
If you are working frantically in your business, it really doesn’t matter how busy you are – it is crucial to take the time to work on your business to ensure that all the effort is worthwhile. Our CFO On-Call is invaluable in guiding and supporting us around financial hazards.
Lesley, Peter & Joshua Turner, Directors
I can’t speak highly enough of John and CFO On-Call. I would recommend them to any business owner because we don’t know about this stuff. We don’t have the time to do an accounting degree, but we need someone to guide us. I’m now living the dream – running the business remotely! The internet has freed me up to work remotely. Everything is in the cloud now and CFO On-Call plays a big part as my Virtual CFO!
Michael Brewitt, Director
Velocity Electrical, Construction
We now have the useful financial information we need to make informed financial and business decisions at the right time. His input has led to a 27% improvement in profitability.
Greg Jacques, General Manager
My CFO On-Call Michael came in and implemented a range of new systems and reports that we still use today. I now have a P&L which I can read and actually understand! Michael’s great at putting things into layman’s terms and helping us make sense of complex concepts. And his value doesn’t just stop at numbers – due to his commercial background he has also been a great asset to us in terms of recruitment and managing staff.
Jenny March, Owner
Before engaging CFO On-Call, the bank wouldn’t support me, so debtor financing was my only option. CFO On-Call set up our new management reporting and forecasting, and the bank changed their mind. Since then, we have grown total revenue by 17%, increased gross margins from 17% to 37% and improved debtor days by 36%. We’re going from strength to strength!
Peter Deverall, CEO
Safa Glass, Brisbane