We Use Cookies! Learn More

Sounds Good!

Importance of Reporting

The Saint's Blog

You might be thinking that reporting is a tool that is used in large companies only, however small businesses can benefit just as much as them! The main benefit of reporting is insight, an insight that you never would have had before. It may seem a bit daunting at first, with new names and numbers however with the right team you will be able to increase the performance of your business, noticing improvements month by month.

Now the true power of KPI's (Key performance indicators) come into place when you have something to compare it to. This can be previous years figures, flexed figures and so on. By placing current accurate statistics next to other meaningful statistics allows for our understanding to become relevant to the situation at hand. For example if I brought together our Sales for this quarter and compared them to a company like Apple, the outcome of the report becomes completely irrelevant and pointless, now when I compare them to our predicted figures, I am able to determine our performance in comparison to the prediction. This can tell me useful information like if we exceeded, met or fell short of our predicted figures. We can then move forward onto determining what was the cause for the variation.

Why do we recommend reporting?

  1. Measures your performance
  2. Helps in planning
  3. Assists in decision making
  4. Increases your efficiency/productivity
  5. Manages profitability
  6. Reliability

The insights from reporting are invaluable, even with basic reporting seeing your gross profit and net (operational) profit, for example, you will be able to see how much profit percentage you are making on your jobs from your gross profit and how much your overheads are affecting your overall profit by seeing your net profit. If your net profit is around the 5% mark in the construction industry, this is quite risky and long term survival can be very hard.

A good net profit percentage is around 10-15%, anything more you are doing very well.

This article was written for Saint Financial Group, a multidisciplinary group based in the UK that helps construction businesses develop and grow. SaintFG offers a range of quality solutions in supporting businesses.

Saint provides the luxury of free business consultancy for of our clients, call now for your free consultation with a friendly business advisor to discuss your burning questions and put that energy back into your business!

SaintFG

Written by:

Dylan O'Rourke MAAT

Got a question? Ask me here 😉

Grab a FREE copy here!

Importance of Reporting

The Construction Survival Guide 2021

The only book you need to start up your construction business in 2021! The CSG becomes your new handbook offering everything that you need in order to create a successful construction business!

Download Now!
SaintFG

How To Grow Your

🚧 Construction Businesses 🚧

Don't know where to start? No problem »

The Saint's Blog

How to keep motivated as a business owner!

As you build your company into the dream that you believe in, you may find yourself hitting some rough patches! Which is normal, do not worry! But we have put together this list of motivational tools to help you get pick yourself back up and get on track! 

Next Article