So what do the measures in Jazoodle mean for your business?
Where do you get started with your business numbers? Fortunately, Jazoodle are here to help demystify these for you. Our guides will help to get you started, but if you'd like formal training, to get to know Jazoodle, please email us. to arrange your training.
If you'd like to talk with us about learning more about your numbers, please call us on 1300 920 851 (AU) or +61 (0)2 9919 2270 (Int) and select option 1, and one of our business integration specialists will help
Understanding your numbers
We've produced a monthly checklist of some of the measures that every business should be across as well as their advisors. Keeping ahead of these metrics will mean that any underlying changes to a business, financial risk, and opportunity identification can be made early. To download an electronic version of this file, subscribe below
Business health score diagnostics
Your business health score will be affected by many different areas of performance within a business. If you have a poor health score, (see our FAQ), this means that there are underlying problems within a business. These could manifest themselves into serious financial problems within the next report periods (generally within 24 months). If you have a poor health score, you need to understand both what affects this score, as well as what to do about it if you see this.
The health scores are graded on the following scale:
If your score is in the red or orange zones, then we would advise speaking with your preferred business advisor, or local Business Connect organisation.
The business health score is affected predominantly by 4 key areas of your business. If you have a poor score, it is likely that attention is paid to the following areas of the business:
Understanding and influencing profitability
Understanding and influencing the profitability of a business is arguably one of the key things you can do within a business to understanding the long term sustainability of a business, as well as understanding subtle changes to your business through changes in the wider environment. Here, we show you why profitability analysis is one of your monthly tasks at the top of your list.
Your profitability measures are prominent in the main Jazoodle dashboard, as well as the forecasting module. Profitability is measured in two parts; Gross profits, and net profits. Start off by assessing these two metrics in the main dashboard. Both are represented with a time line graph, giving trends of net and gross profit:
along with traffic lights for the current and past years:
The great news is you can! It's important to be aware, as part of the monthly checklist for your business, of your gross and net profit margins.
If Gross profit margins are changing, then this could be due to unit price changes, or overall sales level changes. If unit prices are changing, try to understand the reasons for the need to discount in a business. Is the competitive landscape changing? A new entrant into your industry? The economy getting tighter?