Accountants, Tax Advisers And Business Consultants

ANALYTICAL REVIEW AND BENCHMARKING

Analytical procedures can be used to assist in the understanding and improvement of virtually all areas of a business. When carrying out analytical review it is very important to compare the analytical results with your expectations for the same period – And not just with those of a previous year.

Example areas on which analytical review can be carried out include:-

Ø      Sales

Ø      Cost of sales and gross profit

Ø      Wages and salaries analysis

Ø      Overhead analysis

Ø      Balance sheet items

Examples of how analytical review can help your business include:-

Ø       Stock holding policy

Ø       Reducing debtor payment days, and

Ø       Resourcing of cheaper material suppliers

Benchmarking is a process which compares how a business is performing which other similar businesses and the relevant industry in general.

The results obtained from analytical review and benchmarking can then be used to improve areas of a business where inefficiencies have been highlighted. Both these procedures are also very heavily used by the Inland Revenue. Therefore, analytical review and benchmarking not only potentially improves the performance of a business but also acts as a review for a set of Accounts before they are submitted to the Inland Revenue.

We can provide professional preparation and advice on analytical review and benchmarking for your business. Also, to see an example of the Business Report we would produce for you click here.

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