Financial Analytics - Performance Analysis

The ultimate goal of any company at the end of the day is to be profitable. Therefore, it pays off to trace and track the factors that contribute to the bottom line of your business (as discussed previously). There is no "one size fits all" approach as each business faces different circumstances that affect their company’s financial performance in a unique way. Nevertheless, below are a few common examples of financial performance analysis we provide as part of our financial analytics tools and services.

Break-even Analysis

Prior sales figures are not always the best starting point to set a new sales target. They are arbitrary and often ignore the "cost" incurred by the company. Therefore, we help companies identify their break-even point by classifying their cost accounts based on their behaviour (e.g. fixed and variable). The break-even point then serves as an excellent starting point for sales target.

Departmental Analysis

When an organisation maintains multiple business units, it makes sense to report the financial performance of each segment separately. Financial performance can be compared to enhance accountability, identify areas for improvement or discontinue an operation. Departmental analysis be achieved either by breaking down your accounts into departmental accounts or attributing a dimension to your entries. ​

Financial Ratios & Benchmarking

Assessing company performance does not always have to be a time-consuming process. Financial ratios are practical means to assess financial performance, as they are easy to interpret. They provide quick indication on the overall health of company’s profitability, asset utilization, liquidity and solvency. Standard templates are available in our financial tools to generate time-series of various ratios which can be compared to user-defined benchmark values.

These are only a few scenarios which are looked at during our financial analytics services, contact us on sales@wmssoft.com.au to learn more about how you can use Sage 300 to ensure the profitability of your business and download our FREE Financial Analytics brochure below.

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