“To know if you’re making a profit or loss, you need to check the books!” – This old saying still holds true. When “playing football” in the business arena, every shot and every play reflects success or failure, and business performance is the most accurate measure. So, how do you understand the “profit” or “loss” of each business “match”? Business performance accounting is the answer!
Business Performance Accounting: The “Magic Spell” for Sustainable Success
Business performance accounting is a crucial process that helps businesses accurately grasp their financial situation, enabling them to develop effective business strategies. In simpler terms, it’s a tool that helps the “coach” (leadership) “evaluate” the performance of the “team” (business) on the “field” (market).
Business Performance Accounting: The Secret to “Beating” Competitors
With business performance accounting, you can:
- Know the “cost” of each “goal”: Accurately determine the profit earned from each business activity, allowing you to evaluate the effectiveness of each strategy, product, and service.
- Detect hidden “enemies”: Promptly identify unnecessary expenses and management loopholes, helping your business “block” waste and optimize operational efficiency.
- Prepare “strategies” for the next “match”: Predict market trends, analyze the strengths and weaknesses of your business and competitors, enabling you to make smart business decisions that align with the real situation.
Steps to Determine Business Performance: The “Secret” Formula
Step 1: Determine Revenue: The total value of goods and services sold during the period.
Step 2: Determine Expenses: The total value of expenses incurred during the period, including production costs, selling expenses, management expenses, financial expenses, etc.
Step 3: Calculate Profit: Revenue – Expenses = Profit.
Step 4: Analyze Results: Evaluate the profit earned, analyze the causes, and propose solutions to improve operational efficiency.
Example: Company X is a clothing retailer. In October 2023, revenue was $100 million, and expenses were $80 million. Therefore, Company X’s profit in October 2023 was $20 million.
Expert Advice: “Win” with Knowledge
According to Financial Expert Nguyen Van A in the book “Secrets of Success”, “Business performance accounting is the key to sustainable business development. Mastering accounting knowledge will help you make sound decisions and improve business efficiency.”
Business Performance Accounting: The “Secret” for Vietnamese Businesses
According to Tran Van B, CEO of ABC Co., Ltd., “Business performance accounting helps us “see” the financial situation clearly, enabling us to make effective business decisions and “maintain” our position in the market.”
In Summary: Business Performance Accounting – A “Weapon” for “Victory”
Business performance accounting is an extremely effective tool that helps businesses “grasp” their financial situation, make accurate business decisions, and “beat” competitors on the business field. “Use” accounting effectively, and you will “win” like a true football “idol”!
Bar chart showing Company X's profit over 3 months
Contact us via phone: 0372966666 or visit us at: 89 Kham Thien, Hanoi for detailed advice on business performance accounting. We have a 24/7 customer care team, ready to accompany you on your path to conquering success!
