profcat 2011:two - mazars
TRANSCRIPT
PresentationIncreasing Profit & Decreasing Spend
Page 2
HOT TOPICS
• Improve Performance
• Reduce Costs
• Minimise Risk
Page 3
Hot tips
1. Prepare quality management information (MI) 1. Prepare quality management information (MI) 2. Monitor financial performance2. Monitor financial performance3. Understand the results3. Understand the results
Improve Performance
Page 4
Eye Opening Statistics
• 82% of companies lack visibility of profits
• 40% suffer impaired financial performance as a result
• Average age of data used for decision making is 4.2 months old
• 28% of managers do not know the age of data they use
• Finance managers are made aware of company & market changes 1.7months later
• 16% never officially informed at all
Page 5
Improve Performance
Key features of quality MI
No jargonNo jargon
Variance Variance AnalysisAnalysis
Linked to StrategyLinked to Strategy
ExplanationsExplanations
Colour codedColour coded
Non financial Non financial datadata
Page 6
MAZARS Understands ….
how to drive your business forward
Page 7
Reduce Costs
Hot tips
1. Review all costs regularly1. Review all costs regularly
2. Negotiate with suppliers2. Negotiate with suppliers
3. Consider Outsourcing3. Consider Outsourcing
Page 8
Reduce Costs
Examples of Outsourcing
1.Marketing
Typical cost in house:
Outsourced cost:
Saving:
2. Payroll
(based on 100 employees)
Typical cost in house: £12k
Outsourced cost: £6k
Saving: £6k
Page 9
MAZARS Understands ….
every penny counts
Page 10
Hot tips
1. Insure adequately against your biggest risks1. Insure adequately against your biggest risks2. Effective credit control procedures2. Effective credit control procedures3. Robust cash flow forecasts3. Robust cash flow forecasts
Minimise Risk
Page 11
Minimise Risk
Forecasts
1. Reasonable assumptions1. Reasonable assumptions2. Include unforeseen events2. Include unforeseen events3. Consider loss of customers3. Consider loss of customers4. Market cycles4. Market cycles5. Working capital demands5. Working capital demands6. Actions by competitors6. Actions by competitors
Page 12
SummaryImprove Performance
1. Prepare Quality MI
2. Monitor financial performance
3. Understand the results
Reduce Costs
1. Review all costs regularly
2. Negotiate with suppliers
3. Consider outsourcing
Minimise Risk
1. Insure adequately against your biggest risks
2. Implement effective credit control procedures
3. Prepare robust cash flow forecasts
Lara Brennan Carla Hobby
Telephone: 01202 680777