So what does it all mean? Creating a roadmap (budget & cash flow) is an excellent first step; next, we make a legend and a key to better use the map.
- It is said that a picture is worth a thousand words. In that case, it is easy to see why information is often best conveyed by graphs and tables. At JAYA Financial, we will provide the most practical visualizations for your business and explain their implications.
- Dashboards and graphs are an easy way to provide a variety of information in just a glance. The right graph with valuable data can provide a visual demonstration of how your business is performing against last year, over some time, or against established KPI's or industry benchmarks.
- At JAYA Financial, LLC, our network of industry specialists, controllers, and CFO's have a long history of preserving cash and analyzing information to understand what truly drives revenues. This information is a critical component to defining the best strategies to accelerate your business forward.
- When making business decisions, it is crucial to understand the factors (called drivers) which affect fixed and variable costs. Operating decisions can impact some costs and leave others alone, so knowledge of which costs are involved is essential in making the best decisions. For instance, think about a restaurant deciding whether to stay open later or keep its current schedule. A decision to remain open longer will increase payroll costs (variable cost) by increasing employee work hours and/or requiring additional staff. This decision, therefore, must demonstrate a corresponding increase in revenue to be justified. However, not all costs will be impacted; for example, rent (fixed cost) is not considered in this decision. It is not affected by an increased number of open hours.
- At JAYA Financial, we can perform a financial analysis to establish KPI's, monitor financial ratios, and generate returns. This will guide the efforts of your business teams to achieve their goals and provide you a clearer picture of where you are. Understanding what these measures mean will help you make informed business decisions.
