Running your business efficiently includes your ability to understand the books your bookkeeper keeps for you and how to instruct your accountant. You will ask your accountant to prepare monthly or quarterly management accounts for you. Your job now is to interpret the results so that you can prepare strategies for your business.
On 7 August 2012 the Companies (Amendment)(No.2) Act 1999 (Section 32) Order 2012, Statutory Instrument No. 308 of 2012 was signed. This increased the balance sheet total and turnover thresholds for the purpose of availing of audit exemption.
The balance sheet figure is amended to €4.4 million (previously €3.65m) and the turnover figure to €8.8 million (previously €7.3m).
So, to increase profits you must raise revenues, lower expenses, or both. This checklist is a series of questions with comments to help you analyse your profits. This material is not meant to be a definitive presentation on the subject. However, it may help you identify areas where further study might be, well, profitable. Analysis of Revenues and Expenses Since Profit equals Revenues less Expenses, to determine what your profit is, you must first identify all revenues and expenses for the period under study.