December 9, 2021 | by Mark Wald
If you manufacture consumer products, you need reliable financial data. From product profitability to inventory turnover ratio, up-to-date key performance indicators (KPIs) will help you get the most from your business.
Improve Efficiency With Streamlined Data Workflows
The consumer products industry is more fluid than ever. You have to track revenue from multiple sales channels and e-commerce platforms while also accounting for fluctuations in the cost of raw materials and shipping — fluctuations that have become more extreme and more widespread due to disruptions of global supply chains during the COVID-19 pandemic. It's an ever-changing formula that can obscure true product cost and your overall profitability.
To further complicate the equation, you might be using different apps to track data in different parts of your operation. That can result in a duplication of data in some cases and a lack of up-to-date inputs in others.
A bookkeeping and controller services provider can help you integrate your systems to smooth out data workflows and improve efficiency in your back-office operations. And you just might discover that vital, up-to-date information has been available all along — you just didn't know where to find it.
Gain Financial Intelligence With Frequent KPI Reporting
Consumer products business leaders frequently analyze their operations using specific financial metrics. Common KPIs include:
You can see why it's so important to have accurate, timely data when determining your KPIs. Having incorrect, incomplete or dated books can result in a faulty KPI — which can then distort every other KPI, including product profitability.
Safeguard Accuracy and Compliance With Bookkeeping Best Practices
To a large extent, the systems you put in place depend on the nature of your business. There are bookkeeping best practices that can help you operate at maximum efficiency whether your business is primarily e-commerce, brick-and-mortar retail or a combination of the two.
Still, there are universal best practices that you need to follow. These include:
Meet the Moment
It's an extraordinary time to be in the consumer products business. Rarely has any sector faced such a combination of challenges and opportunities. With the proper bookkeeping support, you can overcome the former and take full advantage of the latter.
At Supporting Strategies, our experienced, U.S.-based professionals use secure, best-of-breed technology and a proven process to provide a full suite of bookkeeping and controller services. Are you ready to learn how you can move your business forward? Contact Supporting Strategies today.
Mark Wald, Managing Director, Supporting Strategies | Santa Monica, LA, and Ventura County, provides bookkeeping and controller services to growing businesses.
This website is created by Supporting Strategies to provide general bookkeeping and accounting information only. Supporting Strategies does not provide tax, legal or accounting advice, and the information contained herein is not intended to do so. As such, the information provided should not be used as a substitute for consultation with professional tax, legal, and accounting advisors, and you should consult with a tax, legal and accounting professional before engaging in any transaction.
Supporting Strategies is not a CPA firm.