Analytics and KPIs
Select Reporting > Analytics & KPIs. You see headline figures such as revenue, net profit, gross margin, net margin, cash in bank, money owed to you, money you owe, debtor days, creditor days, current ratio and quick ratio, each compared with the previous period.
Below them are charts for income, expenses and profit over 12 months, where the money goes (the last 90 days), cash balance by month end, and your top customers and suppliers. Open as a report turns the monthly figures into a report you can export.
The cash flow forecast
Select Reporting > Cash flow forecast. AvrioBooks starts from your current cash and adds what is expected in and out:
- Invoices expected from open customer invoices, optionally using your customers’ usual payment delay (tick Use customers’ usual payment delay).
- Bills due from open supplier bills.
- Your own forecast items.
Choose the number of weeks, or a single bank account. A warning tells you if cash is forecast to run out and in which week.
Add a forecast item
- Under Add a forecast item, enter a description such as “Payroll”, “Rent” or “Loan repayment”.
- Enter the amount, whether it is money in or out, and the date.
- Optionally choose a repeat and a Repeat until date.
- Select Add. Manage items under Your forecast items.
Reading the KPIs
| KPI | What it tells you |
|---|---|
| Gross and net margin | How much of each pound or dollar of sales is left after costs |
| Debtor days | How long customers take to pay on average |
| Creditor days | How long you take to pay suppliers |
| Current and quick ratio | Whether short-term assets cover short-term debts, with and without stock |
| Cash runway | How long your cash would last at the current rate of spending |
Using the forecast well
- Add the big, certain items first: payroll, rent, loan repayments and tax payments.
- Mark repeating items with a repeat, so you do not have to add each month.
- Check the lowest balance in the window, not just the closing balance. Cash can dip below zero in the middle even when it ends well.
- Update the forecast weekly. It is most valuable when it reflects what you know now.
If the forecast warns you
When cash is forecast to run out in a particular week, you have time to act: chase the invoices that are expected that week, ask suppliers for later terms, delay a purchase or arrange a bridging facility. Use Aged Receivables to see exactly who to chase.