Good Data
I recently visited a client who switched 12 months ago from a cash book accounting system to a computerised accounting package. Historically we only had financial information available once the accountant had produced the year end accounts, which was nine months after the year end. These figures also lacked detail making it difficult to carry out any analysis of costs and look at KPI’s.
Since switching to the computer based system, I have been able to access the business monthly data and look at actual costs during the financial year. At our last meeting we were looking at the business cost of electricity. My client commented that he thought he had secured a good deal going forward, which he had. However, when we looked at the costs for the current year it was obvious that whilst the price he paid was good the usage was very high.
This analysis enabled us to identify an area of saving which will involve installing a night rate meter, moving to one hot wash per day, putting time switches on the cubicle shed lights and converting the milk and vacuum pumps to variable speed. These changes should enable the business to save over £5,000 per annum.
This is a good example of having good data and making use of it to improve profitability. How are you using your data? Are you overwhelmed with numbers and confused? To discuss analysing your costs against benchmark data or for details of the farm secretarial service we offer, contact Phil Cooper on 07798 673665 or email pcooper@fcgagric.com
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