As a business owner, you need access to the right information to make informed decisions that lead to your success. Understanding key metrics and statistics for your business can help you identify opportunities for improvement and achieve the desired level of performance. Below, we share three key reports every company should monitor to maximize success. Understanding the importance of these reports and how they can influence your business operations will help ensure that you are getting the most out of your efforts.
Product Margins
A product margin report shows a product's profit percentage after considering all direct and indirect costs. This is an important number for understanding the profitability of your products: it will help you determine which products are more profitable for your company and adjust your prices accordingly.
Stock Adjustments
The practice of physically assessing your inventory levels is essential to identify losses due to expired shelf life, defects, theft, or product mismanagement. Daily, weekly, or even monthly inventory monitoring will help you make timely decisions that are key to preventing unnecessary losses.
Cash Management
While proper cash management and monitoring are a fundamental part of running a business, it can easily fall through the cracks when handling multiple areas of your business. A solid cash flow report (detailing your cash receipts, disbursements, and deposits) is the only way to guarantee that the money in your business is being handled properly.
These are just a few of the indicators used to determine the overall health of a business, from understanding the profitability of your products to getting an accurate assessment of your inventory levels and managing your cash flow. And these reports can be vital for your understanding of what’s happening in your business. If you are looking for a point-of-sale solution that generates the reports you need, find out more about pvot here.