You know it is important to lower taxes and increase profits. You also know that it is imperative that you have enough money in the bank to pay the bills, but do you know how to access vital information and the Key Performance Indexes to measure your business progress in Sage 50–Canadian Edition?
Let’s start with the Income Statement and Balance Sheet found in the report center on the home page.
The Income Statement indicates:
- Which expenses are paying you back and should be increased.
- Which expenses should be cut back or eliminated.
- Which products are profitable and which are not.
The Balance Sheet indicates:
- What your business owns – Assets
- What you business owes – Liabilities (or financial obligation)
- Shareholder or Owners Equity – ROI (return on investment)
They also provide Key Comparisons information like:
- Last month vs. current month.
- Last quarter vs. current quarter.
- Year to date. Year to date by month.
- Current month to same month last year.
- Current quarter to same quarter last year.
Combining these two statement numbers will indicate important ratios you can use to manage your success.
Increase your profits by utilizing the Business Performance Monitoring feature:
The key financial ratios of liquidity, efficiency, operating, financing and profitability are all at your finger tips in Sage 50–Canadian Edition. The software provides a detailed performance measurement explanation and graph to help you analyze the information in an easy to understand format.
You will find this Key Business Performance information in the Daily Business Manager under the Business Assistant Menu on the home page. Click on the radio button indicating Business Performance. To get a complete list of all ratios available go to the view menu and chose options. You are able to add any that do not appear on the main page to your customizable list. (See screen shots below)
It is important to know your strengths and weaknesses, manage spending and credit. Have money when you need it. These are all important ratios that Sage 50 helps you to reach and manage greater success.
Dianne Mueller CPB
Certified Sage Trainer
Soma Small Business Solutions