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The quality of financial information that practices hold varies considerably. Many practices have good turnover data available to them from veterinary IT systems, especially in small animal practices, and may use this basic data together with the bank balance to manage the practice. Others look at key data such as turnover, cost of sales and salaries, with some producing full management accounts breaking down profit into individual divisions / branches. From experience very few produce cash flow forecasts.
The veterinary industry has grown historically, and some practices have therefore taken a relaxed view about the level of data they wish to receive. Financial information can be quite complicated and it is important therefore that anything that is available is fully understood and easy to use. However, with the possibility of slowing sales in areas of the veterinary industry, it is very important to be able to react quickly to changes in your financial circumstances. In order to do this you need to have appropriate financial data available. Those practices that have full management accounts, perhaps including rolling cash flows should be well placed to see the trends quickly. Information needs to be presented in a format that is easy to understand and ideally summarised setting out the key data.
If you wish to improve the quality of the data that you have at the moment in time, or indeed consider outsourcing the production of financial information then this is something we would be happy to help you with.
Whoever completes your financial information, the most important aspect is that you have timely, quality information in order to assess the performance of the business, possibly against your expectations. This will ensure that any changes to the trading performance of the business can be quickly identified and actions taken to address the relevant issues. Now is the time to pay particular attention to the financial information, and perhaps consider refining the content.
For more information please contact
Mark Beaney on: 01242 680000 or email: mark.beaney@hazlewoods.co.uk
Hazlewoods outsourcing includes the following:
- Bookkeeping improvements
- Sage training - instant / 50 accounts / payroll
- Management accounts -
monthly / quarterly
- VAT return preparation
- Payroll services
- Budgets / cash flows
- Capital account projections
- Full business planning
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