Financial Insights are required to optimize the performance of a business. The types of financial insights and the process for achieving them vary depending on the size of the business.
Financial insights are simply information derived from financial transactions in the business. In the simplest form they are reports generated from accounting software such as a Balance Sheet or Profit & Loss Statement.
Sometimes financial insights are prepared in spreadsheets because the accounting software doesn’t provide them and spreadsheets are cost effective. Examples of this are:
- Gross Profit reporting for business segments
- Ratios for benchmarking eg: Wages as a percentage of sales
- Compilation of Budgets (so you can incorporate the underpinning information used to determine the budget value)
- Cashflow Reports (especially where the invoice terms make using a software option difficult)
- Sales reports compiled to provide better insight into markets & specific wines
- Costing of wine
Accurate and timely financial insights aid informed management decisions which can propel a business forward but when relevant financial insights aren’t available to management their decisions incorporate a higher risk factor.