There’s one thing common to every business problem we’ve ever looked at:

successful businesses, without fail, understand their cost dynamics

Successful business owners understand:

  • General purpose financial reports
  • Budgets and the differences between:
    • Operational
    • Capital
    • Flexible
  • Statutory financial statements
  • Cashflow statements
  • Management reports
  • Accrual and cash accounting
  • Cash and non-cash items
  • Cost allocation via depreciation
  • Historical cost accounting, current value and replacement cost
  • Basic financial management
  • Cost analysis and cost dynamics
    • Fixed
    • Variable
    • Incremental
  • Break even analysis
  • Cost Volume Profit (“CVP”) Analysis
  • How to evaluate business proposals
  • The need to isolate relevant costs from sunk costs
  • Business forecasting methodologies
  • Risk mitigation
  • How to identify problem areas
  • How to recognise red flags
  • Control and review mechanisms

More than any other factor, BPS Advisory’s consultants are expert at understanding why businesses work and why they don’t.  And it all comes down to understanding the story behind the numbers.