Learning How to Understand Your Business at a Glance Part 3
Time is one of the most precious resources we have and we don’t want to waste it searching through unending reports to identify the issues that require our attention. We waste time and we might just miss some critical threats and great opportunities. This is the second article in a series that will show you how quickly identify the issues that require your attention.
Let’s focus on opportunities and threats when it comes to your products. The report below represents overall profitibility for each product, which can be useful if you are giving preferred pricing to customers.
You can drill down to see who is buying each product, in what volumes, and at what profit. This might be helpful in identifying products for which you are overly dependent on a small number of customers. You might want to spread your risk by securing more customers or offering additional products.
Next you can drill down to look at purchasing patterns. When are customers buying, how often, and in what quantities. This can help you identify interruptions in purchasing patterns that might signal product obsolescence, quality control or customer services, or a competitive threat.
Robert Guild designs specialized reports and automated analysis tools for QuickBooks clients to make decisions they can trust. He is a member of Intuit DeveloperNet and an Advanced Certified QuickBooks ProAdvisor. Visit www.ReportsUWant.com to see pre-designed analysis tools ready to buy or contact him about developing applications for your specific needs at rguild@ReportsUWant.com. You can also follow him on twitter at QBPro