The main objective of every organisation is to make profit. Though sales is not the only factor that affects profit, it has a direct bearing on the profit generated in any business. In the light of the above, organisations tend to spend a lot of time and resources in general on sales. Having a report that shows the average daily sales lets one know how well the products and services are doing in the market and if the company would be reaching her targets. This would inform the management if the business is gradually progressing in the direction at which it is intended.
Another example is the LYTD vs CYTD report – this is the previous year’s report till date compared with the current year’s performance till date. This report can be used to measure not only sales within the same period but also expenses. The beauty of this report is that comparison is being made with the same metrics (same period in time). This report can be used to change practices and move the business in a different and more productive direction and the immediate changes will be evident in subsequent reports if need be.
The example - CY sales vs LY sales report shown gives a table where the sales of a product - Beef Bologna have dropped from the same period in the previous year whilst the sales of the other product - hot dog has almost doubled. The report can be further analysed to determine what made the sales of the Beef Bologna drop and what has gone well with the sales of the Chicken hot dogs. It is important to note that this kind of comparison can be used in other areas of the business to show if there are any improvements year on year (YOY).
Knowing the cash flow status is very integral in the smooth and continuous running of any organisation; asides from it greatly helping planning, it reduces the chances of the organisation getting stranded or suddenly going bankrupt. Most organisations believe the business is doing pretty well as long as the sales figures keeps going up but a sale doesn’t necessarily translate to an income and due to this, an account receivable report is vital. This is a report that show the customers/clients that might be owing, what is being owed and the duration that the payment has been outstanding. This report can be used to determine if the business/organisation is able to survive more credit sales and also let a company see if the customers have abided by the credit sales policy.
A sales report stating figures of what has been sold in a period is not always enough; analysis of the report could reveal incredible insights that are not physically visible to the naked eye at a first glance. Sales can be analysed by first looking at the products and services that are responsible for the chunk of the figures; it can further be drilled into to understand the reason behind that.
As a business, the goal is to be able to replicate success stories across board without re-inventing the wheel. The need to firstly know the driving force of the success story is important and this can be got by analysis. If one of the products or services is a clear leader, some attributes that make it tick can be transferred to other areas of your business. The budding product can also be looked at more intently and some modifications be made that can further improve the growth of the product.
Productivity is very important in any organisation; be it a profit making organisation or a Non-profit making one. Productivity can be measured with different metrics depending on the organisation's industry, values and mission. In particular, almost every profit making business want their sales to go up and expenses go down. This means that the cost of sales which in most climes is dependent on the cost incurred on a product or service whilst moving it from the factory/warehouse to the point of sale goes a long way in determining if a business will make profit or not.
The report shows the spread of the products and services the organisation deals in across Nigeria. The geographical representation can give at a glance the volume of sales in particular regions and the distance from a hub (factory/warehouse), that can be calculated would determine the transportation costs. This can tell the business if opening or maintaining a warehouse in a location is viable. It also tells the management of the acceptability of the product in different parts of the country.
Disclaimer: Please note that the above is no representation of any person(s) or business(es). The figures and facts are shown to give examples of the different kinds of reports that can be created.