Management By Exception

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As a business owner, you will have 1001 things to take care of every day, every week and every month.

The last thing you will do will be to spend 2 hours of your time trying to understand your accounting numbers to know what actually went “wrong” last month!

Minimize “surprises” in your monthly Accounts to enhance the ability to “predict” the financial results.

You must know your Product or Service Gross Margin and your monthly Operating Fixed Costs well. This will allow you to know your monthly Breakeven Sales volume.

If your Sales volume has crossed this Breakeven level, you will know quickly how much profit you will be making for the month. The reverse is true too.

So, educate your people to “inform” you wat in advance of any “Unusual Items” which happen during the month which would “affect” the month’s Profit number.

This would better manage your “expectation” of your performance even before your accountant has completed the Accounts for the month.

Anticipate and Action to overcome the Unexpected.

This will be the main job of a Business Owner on using the numbers to influence your people to bring in more profits for the month.

Ask yourself, only you know the numbers in the company, and only you have “influence” the end results by influencing behavior of your people towards achieving those end results.

Accounting is reporting of History.

And History keeps repeating itself.

So, start using Accounting to achieve Future.

This is what differentiates CBO from normal Accountants in the industry.

This is in CBO’s DNA.

If you need help, feel free to contact us at :

(M) +65 90880669

(E) [email protected]

Written by Kelvin Loh