Using Data to Manage Business

1. Using Data to Manage Business There are many factors that must be looked at by managers in order to ensure a business operates smoothly and profitably. These include the costs of doing business, allocation of resources, cash flow, mark-up margins, and more. This means that a lot of data is used in order to effectively manage a business. Some of the most complex items are included in the costs of doing business. This category includes expenses such as taxes, employee pay and payroll taxes, utilities, and wear and tear on equipment. Consumable supplies, such as ink and paper in a print shop, must also be tracked and costs calculated. Other supplies include paper, printer toner, and office supplies that will be used in the day to day operations of the business. Allocation of resources can be another area where collection of data and processing of that data is key to efficient operation of the business. This includes all machinery and equipment that is operated as part of the business. It can also include assignment of employees to different equipment based on their skills and aptitudes. It will also rely on allocation of supplies that are consumed during the operation of the business. Cash flow is an essential item that must be tracked closely. While most businesses have arrangements in place with vendors that sell them supplies concerning payment, it is critical to ensure that adequate cash is on hand to cover invoices when the time to pay them comes. Problems can arise quickly of a situation develops that leads to more cash going out than coming in. Mark-up margins are calculations used to determine how much a product or service must be sold for above the costs incurred producing that product or service to ensure the business remains profitable. If a business sold all items at the same price they paid for materials and supplies, it would lose money and end up going bankrupt. Mark-up margin takes into account the total cost of

2. production and adds a set percentage of that cost above it to maintain profitability. How businesses collect and process all of the data produced by operations varies from one business to another. In most cases, however, computers are used at some point in the process to help streamline operations. Choosing the correct business analytics software for the specific type of business is one key to ensuring the business has all of the data needed to make the day to day decisions needed to run a smooth and profitable enterprise. Presented By www.insideinfo.com.au