SMS, in conjunction with the client, will identify areas of the business that they believe are vital to monitor its performance. The obvious ones are those previously agreed in the preparation of the Budget but these can be enhanced by monitoring and measuring Key Performance Indicators (KPIs). These will vary greatly from one company to another but they will probably include:

• Sales Leads Conversion Rates
• Customer Renewal Percentages
• Labour Efficiency Rates
• Comparisons to Previous Periods

Management Accounts and/or KPIs will be prepared to an agreed format and to an agreed time scale e.g. monthly or quarterly, using internal accounting data compared with previously prepared Budgets.

If accounting data is not readily available, SMS can assist with the introduction and running of relevant accounting systems, within the client company.

In addition to the Trading Figures and KPIs , a Balance Sheet will also be prepared on the same regular basis. For a lot of SMEs, a Balance Sheet is a confusing document but it is important that it is understood and SMS will ensure that it is.

SMS also recognises that not everyone is strong in reading and interpreting numbers included in Management Accounts. Therefore, in order to assist them, as part of the normal procedures, a written Financial Report is prepared, covering and highlighting all of the major points shown in the accounts.