Profit Predictor is a simple and easy to use tool that helps business owners unlock the true potential of their business and how much money they could extract from the business.
This app will perform a breakeven analysis in simple terms would be described as the value of sale required in order to cover the costs of the business including the owners reward.
For many owner managed businesses, performance is measured by turnover as this is a common basis which can be easily reviewed year on year or month on month. However it is perfectly possible to have millions of pounds worth of turnover yet no profit.
This app will work back from your desired takeout from the business taking account of the current business costs and gross profit margin to establish the required business turnover on a monthly basis. It will also inform you of the estimated Corporation Tax to put aside on a monthly basis if you hit the target.
Charnwood Accountants have been using the principles of this app for many years to help their clients to better understand the link between their desired rewards from the business with the level of turnover required to achieve it.
The app has been designed so that it is flexible. Once you have entered your historic information you can edit this to see the effect on changes which could be made, for example:
• The effect a change in gross margin has on the required turnover.
• The effect of a change in overheads of the business.
• The effect of increased or decreased takeout from the business.
• Change the directors mix of takeout to include a pension contribution.
The app has been designed for business owners to set turnover targets and to ensure they are moving their business forward to deliver the required takeout to achieve the personal lifestyle they desire.
Charnwood Accountants has been advising owner managed businesses since 2004 from their offices in Central England. As a business they have a clear service lead ethos which is always delivered by qualified Accountants or Chartered Tax Advisors. They offer a full range of accounting, tax and audit services geared towards supporting their clients operating in the modern business world.
Charnwood Accountants understand that providing support to the financial side of their clients business is absolutely vital in order for their clients to grow and prosper. Through their contact with businesses over a number of years it became clear that the majority of their clients monitored their business through the movement in their sales.