PROFIT & LOSS ACCOUNT FINANCIAL TRAINING

1. HOW TO GET REAL INSIGHT FROM PROFIT & LOSS ACCOUNT INFORMATION

• We explain the purpose of the Profit & Loss Account and the items you will find in it in the context of your business and why it really matters how you apply the key terms in practice:
  • Variable Costs v Fixed Costs
  • Mark-Ups v Margins
  • Depreciation (and Amortisation)
  • Return On Sales / Interest Cover / Dividend Cover etc
• How to work out (for any business) the sales you need to find before you make any money and why this is such a useful benchmark. If we include your numbers in the training we will calculate this for your business and show you how to work this out yourself in future.
• We show you why you need to look beyond the top-line and bottom-line of the Profit & Loss Account - particularly useful if you have branch / site / unit profit (or cost centre) responsibilities:
  • New ways to assess performance against last month (or last year or budget)
  • Greater insight into the reasons behind targets being exceeded (or missed)
  • Ideally we highlight key aspects relating to these points as they apply to your numbers and review other illustrative case histories

Clients typically find it highly illuminating and it often prompts immediate changes in their businesses

2. HOW TO IMPROVE PROFITABILITY (IN TOUGH TIMES OR WHERE SCOPE LOOKS LIMITED)

• Even non-financial people can still find themselves pressured to find more profit. We show you a simple starting point from which to assess the best options. And if we include your numbers in the training we'll prepare this for you
• Factors that impact how changes in top-line sales feed through to profit (or not) as the case may be. (Has helped many people we've trained directly influence their comapny's strategy.)
• Common sources of margin erosion that can be easily overlooked and their impact under-estimated.  Plus the strategies and systems you need to prevent it
• Overheads: Is your cost-base too high or even too low? Critical stuff if you want (for example) to argue for more resources
• If you are routinely negotiating with customers and suppliers we offer you some invaluable tools to help secure better outcomes

Clients who have been conditioned to think simply in terms of 'more sales & lower costs' find a knowledge of these relationships particularly valuable

3. HOW TO MAKE SOUND PRICING DECISIONS

• Different pricing methods can produce very different profit margins so we show you what you need to be aware of
• The different challenges you have to contend with depending on the nature of the business you work in and what this means in terms of risk and controls
• We highlight some useful benchmarks for deciding whether you should accept or reject work at a given price
• If you have product or service responsibilities we look at how to structure these to create a sound business.

Rather than be constrained by profit margin targets, clients are often surprised at how pricing can prove a source of real competitive advantage

4. HOW TO CREATE PROFIT & LOSS ACCOUNT BUDGETS THAT WORK IN PRACTICE

• Where to start to create a simple but soundly-based Profit & Loss Account budget
• How this essentially straightforward approach can be applied in the context of a larger business with more complex structures.  We look at:
• Top-Down v Bottom-Up approaches
• Profit Centres v Cost Cnetres
• How to foresee budget deficits (and even excesses). We consider how to best track 'Budget v Actual'
• Budgeting issues that typically give rise to friction and how to address them

Fresh ideas that aim to give your budget the best chance of giving you the right answers

5. ARE YOU CLOSE ENOUGH TO THE KEY NUMBERS?

• What is the most important number in the Profit & Loss Account?
• Where do you find the most important numbers in the management accounts?
• Is there more to achieving strong cash flow than a strong Profit & Loss Account?
• If you have Cost Centre or Profit Centre responsibilities, you might well receive monthly accounting printouts from Finance.  We help you make sense of what you are likely to find.

Can prove a bit of an eye opener.

FORMAT AND CONTENT

WHO WILL BENEFIT?

FINANCIAL TRAINING - WHERE?