Best practices in reporting

Which figures and ratios should you monitor periodically to know if your company is on track or if intervention is required? Based on our experience, you would want quick and reliable access to the following information:

• Current EBITDA and the year-end forecast
• EBITDA as a percentage of revenue
• Year-on-year revenue growth
• DSO (Days Sales Outstanding: how many days of revenue are outstanding in accounts receivable)
• DIO (Days Inventory Outstanding: how many months of stock do you have on hand)
• DPO (Days Payable Outstanding: how quickly you pay your creditors on average)
• Whether you have sufficient bank balances or require credit in the coming period
• How much VAT you must remit periodically and whether that cash is available
• The total debt at year-end and the scheduled repayment timeline
• How much dividend you can distribute this year and the projections for following years
• Expected corporate income tax for the current year (including loss carry-forwards)
• The valuation of your company (based on your 3-year plan)
• Projected revenue and profit for the next 3 years

Smartbooks automatically extracts all relevant data from your accounting system and presents it in simple reports and overviews. All insights are always up-to-date and available.