Weekly performance reports are prepared so that management can monitor their business’ actual performance. These reports should be produced on a weekly basis and for each business unit. This helps to keep management and the business unit team informed as to what is actually happening and also allows monitoring of variable trading conditions, costs or product pricing and how it all affects the bottom line.
Whilst weekly performance estimates will not be 100% accurate, if the estimates are prepared on a methodical basis using as many ‘known figures’ as possible, the final result should be very close to the actual figures when they are prepared based on the monthly financial accounts.
The real benefit of receiving regular weekly performance reports is that it enables you to immediately investigate any key performance indicators which are not in line with your budget estimates and to instigate remedial action within a few days of the end of the week. If you relied on monthly financial accounts it could be at least 4 or 5 weeks later before remedial action would be taken.
If you would like some help to implement a weekly profitability reporting system for your business, please do not hesitate to contact us.