Retail pharmacy

No management information systems...

Issues Identified: No management information systems
Reporting Method: Current year actuals versus last year actuals

Our client is an established business, and Sheards prepared monthly bookkeeping for VAT purposes on accounting software.

A conversation with the client at year-end accounts review highlighted that the client was “surprised at the profits and corporation tax charge” – his management information system was looking at the bank balance and then guessing his results!

What followed was that we pulled together a monthly reporting structure to accompany the VAT record keeping, and compared this to last year so that he could get a handle on how the company was performing compared to last year to ensure there was growth.

We looked at benchmarks that the client wanted; gross profit margins and employment costs versus sales, as these were the main costs to the business versus relatively fixed overheads.

We also compared industry averages, so that the client had a handle on his business – essentially ensuring that the business was performing in line with his expectations and plans for ultimate third party sale on his retirement.

Our client says

“Sheards took the information I thought was there just so that I could meet my VAT obligations and put it into an easy to understand report, showing me this year figures against the prior year, which was just what I needed to ensure that the effort I was putting into the business was resulting in the growth I wanted.

Having up-to-date figures meant that I knew what my results for the year we're looking like, and with Sheards input, I could make tax-efficient decisions in real-time.”

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