Management information – what is it good for?

Running a business without timely accurate management information (MI) and cash flow forecasting is like a garden without roses or planting a vineyard without trellising! Good MI will allow you to monitor how the business is progressing through the year, compare actual costs against budgeted and highlight your pinch points for cash flow enabling you to make strategic decisions in a timely controlled manner. MI is a fundamental tool which should be used to underpin all your financial decisions.

Vineyard owners often start with great intentions when planning the initial vineyard set up. The cash outlay is considered, including looking at the cost of the land and its preparation, planting the vines and installing trellising etc. But this level of forward planning is not always maintained or regularly updated, with many relying on the statutory accounts at year end.

When businesses lack robust financial plans, it can impact their ability to continue investing in the vineyard, producing their wine, and bringing it to market, ultimately affecting profitability and the overall success of the vineyard.

Reports

Reports using figures, narrative and graphs allows you to easily monitor the businesses health and once set up can quickly become an essential tool. Key performance indicators such as number of bottles sold, value of stock, creditor days can assist with making strategic decisions.

Here are some examples for a fictitious vineyard:

Cash flow forecasting

Cash flow forecasting, from a high level 5 year plan to one in greater depth for the next 12 rolling months, gives you the ability to see when cash expenditure will be high and ensures you can plan for the additional outflow. The forecasts can easily be flexed to see the effect of different scenarios such as, what if salaries increase by x% or what is the effect of selling for £x more per bottle.

How we can help

Our experienced team can assist you with setting up MI and forecast reporting so that you can produce reports that can be reviewed and discussed to ensure you stay on track with your future growth plans. We can facilitate these discussions and act as a knowledgeable sounding board, helping you not only clarify the goals for your vineyard but also identify the steps needed to reach them, such as securing additional funding, making asset purchases, or expanding your team.

Please contact our vineyard team for a free initial discussion.