Tag - Understanding Financial Statements: Management Accounting

Where do you start? Understanding financial statements sounds daunting. Here, we go through the practical aspects of Management Accounting. Learn about the benefits of Management accounting compared with Tax Accounting. Then, setup your Chart of Accounts to give you the greatest information from your financial statements. At the same time, work on the practicalities: TrendBoards, ChangeBoards, Ratio Analysis to name a few. In addition, understanding financial statements will highlight the benefits of accrual accounting compared with cost accounting. To explain further, accrual accounting will allow you to gain the most information from your accounts. Find out the importance of accounts receivable and accounts payable to accrual accounting.

Management Accounting Suggestions

In this article, we discuss some of the common improvements that can be made to small business management accounting bookkeeping systems to make them more useful for management accounting and performance measurement purposes.The usefulness of many of the tools and discussions in 12Faces rely on the quality and nature of...

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Business Analytics: Sample TrendBoard Results

Business Analytics: ScoreBoard Display DemonstrationThe 12Faces ScoreBoard is a business analytics tool for small and medium business. It takes your annual, quarterly and monthly accounting data and displays it in a business analytics template using a  graphical format for easy interpretation.We show a few examples of our business analytics tools...

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Key Business Indicators: Interpreting TrendBoard

TrendBoard Trend Analysis TrendBoard is our tool for visualising trends in your performance data so you get an early warning of any problems more on the ScoreBoard trend analysis tool here Key Business Indicators 12Faces is committed to helping you achieve Sustainable Business Success.Sustainable means on-going, you need monitoring tools to check your business’s health. Dictionary of Business Finance Terms In...

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Benefit from Business Benchmark Resources

The term "Benchmark" is used to describe a piece of information that can be used as a comparation with your businesses' performance so you have an understanding of how you compare to your industry standard performance.  See Wikipedia for more.   Benchmarks are very useful because, if you have nothing to...

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Critical Financials for Business Explained

Critical Business Financials Explained provides a commentary on Tips that appear in the 12Faces TrendBoard family of analysis tools  

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How to Boost Your Accounts Receivable

Accounts Receivable: "The process of collecting money your customers owe you."  Failure to have this process working well leads to insufficient cashflow and is a major contributor to business failure.  Ignore it at your peril!  Yellow Belt 

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How to Use Gross Margin Analysis

Gross Margin Analysis: Lets you diagnose problems caused by changes in Income and/or Variable Costs. Income and Variable Costs can move in different directions, or in the same direction, at different speeds. This can make it hard to work out what is causing an upturn or downturn in your business. The analysis tips here...

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How Gross Margin Analysis Boosts Profit Explained

Gross Margin Analysis opens the door to understanding the complex interactions between Revenue, COGS (Cost of Goods Sold or Operating Expenses) and Gross Profit.  It can be hard to understand why (e.g.) Revenue is going up but Gross Profit is going down!  Gross Margin also lets you measure the operating...

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Overhead Margin Analysis Explained

Overhead Margin relates to Overhead Costs, which are the costs in your business that do not change directly with a change in your Revenue and/or a change in your Cost of Goods Sold (COGS). They include such things as: Rent, insurance. Interest. Salaries of permanent staff. Administration costs in general; telephone, office costs. Some elements of the...

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Learn about Daily Sales Outstanding Metric

Summary cashflow is the life blood of a business but it is a difficult thing to grasp as an abstract idea.  "Is my cashflow OK?" is difficult to answer.  Effective management of Accounts Receivables is part of the answer.  The  Accounts Receivable Daily Sales Outstanding (DSO) ratio, and its partner, the Daily Accounts Payable...

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