Costing for Profit

Philip M Collis, FFA
Fellow of the Institute of Financial Accountants

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What is costing for profit? - The old Jack Welch's (General Electric) slogan was "Fix it, close it, or sell it." I think this is still true today for many small to medium sized business owners. In 1981, when Welch came aboard as GE CEO, the company was ranked fourth among U.S. corporations by market value, at $13 billion. A little over a decade of chaos later, Welch has led his company to the top of the list, with market value of $89 billion.

Phil Collis is a qualified cost accounting engineer with over 20 years experience in working for small companies, helping them achieve greater profitability by building and maintaining the tools which managers use to control costs and set realistic prices.

What's happening to your profit?

Recognising the problem
With an annual turnover of £3million earning 3% operating profit, a business is losing over £200,000 per year in potential profits.
Most businesses should be earning 10% operating profit on turnover at market prices, but because many small to medium sized enterprises do not have the in house expertise to create and maintain effective management information systems, they are losing out on the opportunity to earn what is rightfully theirs.
Getting some help
Cost accounting used to be very expensive Only large corporations could afford to hire an army of cost clerks as well as financial book-keepers but the staggering power of modern computers and off the shelf software means that every small business can now have the management information system that was the prerogative of huge corporations of the past.
A pleasant problem
Now you have to decide how to invest the extra profits you will be making!
The software will be YOURS - I do not claim Intellectual property rights or copyright
- F R E E     S O F T W A R E - I will install the basic templates I already have on your system, thus saving you time AND money.

STOP THAT LEAK!

If you are asking yourself "why am I not making enough money?" then I can certainly help you to achieve the right profit for the size of your business.

Sir John Harvey Jones MBE (Britain’s most impressive industrialist-Captains of Industry 1985), says success is "making a profit out of the markets where the market is"
Sir John once said "The future is more and more SMEs and not large companies. Small firms can move faster and change faster. Since the 70s, I have believed very strongly that the future lies with companies that adopt the IT (Information Technology) that is available. IT is usually put under the remit of the financial director who knows bugger all about business and technology"
He insists size is not a barrier to using technology and has met a range of dealers in previous 'IT for profit' seminars that ranged from one-man-and-his-dog firms to large operations with 10 million turnover or more.

I specialise in designing, implementing and maintaining Management Information Systems for small to medium sized businesses using common computers and software found in almost every business.
I work on a consultancy basis on your premises, using your own equipment and software, so that any applications I design for you would be your own property.
Free consultation including demonstration costings - contact me

The main areas of control are in stock, direct labour (for manufacturers and service industries), and overheads budgeting, all linked to standard costing and product specifications. I design, create and maintain the turnkey applications needed to provide costing information, and integrate these results with your own financial accounts so as to reconcile differences between standard and actual results, answering the question “where is my 10% operating margin?” (example - sales analysis report)

Philip M Collis, FFA
Fellow of the Institute of Financial Accountants
based in Essex, England.

Links...
UK Small Business Directory  |  UK Business Forums  |  manufacturing talk  |  e4engineering  |  Applegate
DTI Manufacturing Advisory Service  |  The Manufacturer

Costing for Profit

Philip M Collis, FFA
Fellow of the Institute of Financial Accountants

all content in this web site is ©2004 P Collis
Home  | Market Pricing  | Bio  | Working Example  | Itinerary  | Costs  | Contact  | Links


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