The starting position in medium-sized companies
In many medium-sized companies, the BWA (betriebswirtschaftliche Auswertung – management accounts) prepared by the tax adviser is the most important source of figures. It is valuable, but often arrives with a delay and is structured according to tax rather than business criteria. For management purposes, answers are then lacking to questions such as: which products, customers or orders are really profitable, and how will liquidity develop over the coming months?
In addition, important management parameters do not appear in the accounts at all: order backlog, volume of quotations, capacity utilisation or complaints. Those who do not review these values regularly often only recognise undesirable developments once they are already reflected in the results.
Building blocks of a controlling system
We work with you to develop a controlling system that uses your existing data from accounting, inventory management and sales and supplements it with the missing perspectives. In doing so, we make sure that the effort required for maintenance is proportionate to the benefit.
Liquidity planning deserves particular attention. Even profitable companies can run into payment difficulties if upfront costs, inventories or long payment terms tie up capital. A rolling plan shows in good time when bottlenecks are imminent and which measures can counteract them.
- Corporate planning with revenue, cost and earnings plans
- Liquidity planning on a weekly or monthly basis
- Contribution margin accounting by product, customer or order
- Target-versus-actual comparison with variance analysis
- Cost centre accounting where it is useful for management purposes
Key performance indicator systems and reporting
The building blocks result in a key performance indicator system that shows the most important KPIs (key performance indicators) at a glance. In addition to financial parameters such as gross profit, earnings and liquidity, these also include operational values from sales, production or service that point to changes at an early stage.
Together with you, we determine who receives which report at what intervals. The management needs a condensed overview, while divisional managers need the figures they can influence themselves. In this way, reporting becomes a management tool.
Collaboration with your tax adviser and bank
Controlling complements the work of your tax adviser but does not replace it. On request, we coordinate the chart of accounts and evaluations with your tax advisory firm so that data are not prepared twice. Comprehensible planning and up-to-date reporting also make discussions with your bank easier.
Frequently asked questions
From what company size is controlling worthwhile?
Liquidity planning and simple contribution margin accounting are useful for companies of almost any size. The scope and level of detail of controlling grow with the complexity of the company.
Do we need special software for this?
Not necessarily. To begin with, a well-structured spreadsheet is often sufficient. If requirements increase, we advise on the selection of suitable solutions.
Do you also take care of bookkeeping or tax returns?
No. Bookkeeping and tax advice remain with your tax adviser. We concentrate on business analysis and management control.
How long does it take to set up a controlling system?
That depends on the initial state of the data and the desired scope. We usually begin with liquidity planning and contribution margin accounting and then expand the system step by step.