Do you monitor performance of your sales activity?
If you are not selling you are not in business. In business knowing what is sold and to who it’s sold is as important as selling goods and services.
It’s a good idea to be aware of your business’s sales activity and trends on a month-by-month basis. This have many strategic advantages including:
1. Setting prices.
2. Introducing new products or services to the market.
3. Withdrawing products or services from the market.
4. Identifying high and low volume products and services.
5. Identifying areas to invest your marketing dollars.
6. Evaluating the business growth.
What needs to be done?
Make sure your accounting system is producing reports to help your business to monitor it’s sales activity. For your accounting system to produce the right reports you should the following ensure as a part of your end of month tasks:
1. All the goods delivered from your warehouse are invoiced.
2. Ensue all goods returned are processed and credit notes are raised.
3. Time spend on billable hours are recorded and invoiced.
4. Progress claims on work completed is authourised and invoiced.
How do you monitor sales?
In your accounting system set-up reports on sales:
1. By product or service category
2. By customer
3. By sales channels
4. By region
5. By sales person.
Many accounting systems are capable of producing report to help analyse and understand the sales activity. If your accounting system cannot provide you customised reports for you to analyse understand your sales activity, extract data from your accounting system and use Excel pivot tables to produce customised reports.
When analysing the sales activity compare them to the previous periods and to your forecasts and budgets. Also analyse you sales activity to understand the price and the volumes sold and it’s variations to previous periods.
With sound sales analysis and understanding, we hope you do more sales and see your business continue to grow.