Importance of Profit Monitoring
Recently, a client came to us after 18 months of operation in a dire cash flow crunch. The business and the owner personally accumulated a significant amount of credit card debt as a result of the business declining 15% or so over the past 9 months. Without monitoring, measuring or analyzing the profits of the business (that's what CCS does) the situation escalated into a cash crisis whereby the entire business and the owners personal credit was at risk. The purpose of creating a numeric representation of a business ie a model is to allow the business to be monitored for deviations from a forecast that was established. Thus, creating an early warning signal so to speak so that problems that do arise can captured and measured. Over 9 out of 10 businesses without a CFO DO NOT have the proper financial controls in place. In our view this is probably the single most significant reason why businesses fail or are under duress at some point of their existence.
Contact us to better understand how we use our 5 Step Process to install financial controls to monitor, measure and analyze profitability. To gain from our insights please contact us or sign up for email updates via https://www.charlotteconsultantservices.com/news-update.
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