It’s fair to say 2024 was a hard year for many businesses as they attempted to cope with choppy economic weather. Turnovers flatlined, overheads climbed, margins were squeezed and net profits declined. Glimmers of sunshine are lining our horizon however, brought about in part by the Reserve Bank of New Zealand reducing the OCR. This has led to much needed reduced borrowing costs and a stimulus in consumer spending and investment. Consequently, some in the business community are beginning to feel confident as we get 2025 underway.
A NEW BUSINESS TOOL
Despite many businesses now traversing the gloom to glee pathway, no business owner should be complacent. It’s just as important as it ever was to understand what is transpiring in our businesses and why. When we discern this, we are better armed to weather future economic storms, seize opportunities and improve profitability. With that in mind, Greenlion has been preparing reports for its clients using Fathom Reporting software. Aptly named, the report helps clients fathom out how their business is performing at both macro and micro levels.
BENEFITS OF FATHOM REPORTING
Succinctly, a Fathom Report addresses four (4) areas aimed at financial analysis, management reporting, cash flow forecasting and consolidated reporting. It’s a tool that imparts valuable information to business owners. For instance, the in-depth financial analytics Fathom provides bestows insights into tracking key performance indicators and visually showing an owner their breakeven point. This enables the margin of safety for the business’ profitability to be identified from a division or other business unit measure perspective. Similarly, regular management reporting permits a deeper understanding of the financial performance of the company to be attained. This empowers an owner assisting them to make timely decisions in respect of the activities undertaken by the company such as whether more or less of an activity should be performed or a product produced.
Alongside management reporting sits cash flow forecasting. This is pertinent to every business owner. Profit is one thing. Cash and how it flows is quite another. Understanding the drivers of cash flow, and completing forecasts is an integral part to building a successful business and is a key feature of Fathom.
Finally, where a company is made up of separate businesses and/or divisions it’s vital to understand how each part of the business is performing solely, and in conjunction with other parts of the company. Under a Fathom Report, consolidating budgeting and reviewing results is possible - all necessary activities for a company to grow.
Ultimately, we believe Fathom Reporting enables proprietors to optimize, enhance and improve the performance of their company, which can result in a business having a competitive edge over its competitors.
To help owners understand the results from their Fathom Reports us Lions are at the ready. So, if you think this type of Report could be beneficial to you and your business, be sure to discuss it with your Lion Accountant.
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