Cost and performance accounting / controlling
Cost accounting
How a product price is determined is often only answered across the board or due to a lack of knowledge. The entrepreneurial success depends on the own calculation. Only those who know the real value of the products or services they offer can be successful in the long-term. The calculation in the company plays an important role. A solid calculation is the basis of every entrepreneurial success. It doesn't work without calculation. Most of the time, the market prices are well-known - however, your own calculation data is often out of date, is incomplete or not at all. Unfortunately, the real costs, a part of the calculation, are often not known. As a result, the price for one's own products or services can often not be determined or only inadequately. However, a lack of knowledge about lower prices, trading margins, prime costs, overhead cost allocation, cost centers and cost objects and other inadequate calculation bases in the company unfortunately often lead to incorrect prices and thus to losses in most cases. The exact knowledge of your own calculation provides essential basic data for pricing and is an important prerequisite for correct post-calculation and thus for long-term business success. Measures that enable a competitive price are derived from knowledge of the individual calculation values. A conscientious and ongoing post-calculation can represent the success of the company. If deviations from the preliminary calculation are found, proper corrective measures can be taken promptly. The knowledge of the post-calculation provides the basis for analyzing the errors and thus for improving internal company structures, which in turn have an impact on the success of the company. Basic data for the preliminary and final calculation is determined by a cost calculation tailored to the company. The figures for this are provided by good and solid accounting in the company. The presentation of the costs about the quantities determines important company-specific values which are used in the preliminary and final calculation. The pre and post calculation is used to find the competitive sales price for the products or services offered and is an important basis for monitoring the success of the company. The deviation analysis of the results from pre and post-calculation serves to research the causes. When it comes to pricing, it is important to make a sustainable profit between the market price and your own costs. Transparency in the calculation is the crucial building block for corporate success.
Controlling
Far too few companies see controlling as a management task. Controlling has an important role in the company. It makes a decisive contribution to the success of a company. Controlling is unfortunately largely neglected in small and medium-sized enterprises (SME) or is often not available. Rapidly changing market conditions or internal factors in the company force entrepreneurs to plan more precisely, e.g. through controlling. A frequent result of a missing or faulty controlling is that more and more companies have great difficulties with the continuous use of the company as well as in terms of liquidity. A often neglected receivables management also contributes to this. Unfortunately, you can often only make insufficient or no statements about business development during the year. Only when losses occur, the current account line is exceeded, payment orders and attachments are received and the financing partners react, do some entrepreneurs look for the first possible solutions. Questions come up like "What did I do wrong?" "What could I have avoided or done differently?" We are now beginning to look for the causes of the problems that have arisen. Control is used to analyze the past and, based on the results of the control, can make relatively reliable predictions for the future. Certainly not everything can be predicted. There is always a residual risk. However, every well-run company should set realistic goals for the future and work towards them continuously and efficiently. Deviations from these set goals can be easily identified in this way, such as in terms of costs, profit, product quality, etc. Only when these deviations are known can and should proper measures be initiated. Good controlling provides the basis for this.
If there are deviations from the goals, the controller suggests options, ways and measures for changing course. In consultation with the entrepreneur, these should be implemented promptly and efficiently to prevent major damage and losses in the company.
However, small and young companies are often unable to employ a controller. The tasks of controlling are often done on the side. The function is performed by the entrepreneur himself, by accounting staff or often not at all.
We help small and medium-sized companies with the introduction and implementation of individual controlling.
Key figures
Key figures are important instruments for internal corporate management. They serve as the basis for decisions, for checking and documenting important facts in the company and are an important means for solid business advice. As a component of risk management, they offer important support for business decisions. Today, companies are increasingly confronted with opening up to external partners. Whether through credit agencies or the rating of the banks, it is essential to make sure the necessary transparency everywhere to benefit yourself, such as through better and more helpful terms or the granting of bank loans. An essential element for the assessment of a company is an analysis based on key figures. It is often found that the development of key figures is usually associated with major problems. The selection of the right and meaningful key figures is decisive for the success of the company. In addition to standards, the choice should also cover company-specific needs that are essential for corporate management. In a range of areas, from financial, asset and earnings position to operational data, the key figures have to be individually adapted to the company and used successfully. A few key figures are usually not enough to make a reliable statement about the company's situation.
When is a key figure good, when is it bad? This question cannot always be answered straight away. A key figure must always be assessed in connection with the company.
To manage a company, permanent information is required that enables planning, decision-making, implementation and monitoring processes to be controlled. Quantitative and qualitative information is required. The data for this also provides solid and good bookkeeping in the company.
As part of the regular reporting system, key figures offer a summarization of important information on business processes and business data.
However, the mere key figures are not enough as an information tool. Key figures must also be commented on to make the necessary meaningfulness.
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