6 early signs of a good (or bad) fiscal year
If you haven’t embraced modern, low-cost accounting software or don’t use it to its full potential, you have to use your gut feeling to work out if you’re having a good or bad year.
What are the early signs? I list down six here.
1. Your sales are up (or down) in comparison with previous years.
Many business owners still only use their level of sales as a measure of their current trading success. Now this is a fairly blunt measure, as it assumes all other factors like gross profit margin or overheads remain unchanged, but that is rare. Your sales may be up because you’ve heavily discounted, so you may be worse off, running around doing more work for less profit. On the other hand, your sales may be down because you’ve increased your prices, so your overall profit could be unchanged!