I’ll put my hand up and admit that if you hand me a Profit & Loss (P&L) and Balance Sheet (BS) report and ask me to provide insight, I’ll probably stare at it like one of those magic eye books praying for the ‘aha!’ moment when it is all miraculously revealed.
The information I need to analyse and understand the business is in the reports, but it isn’t presented in a way I can intuitively understand or use.
How do I analyse to gain insight?
I recently moved to a new suburb and noticed an ad in the community news for a baby-sitting club. The scheme involves sitting other people’s kids in exchange for reciprocal services. The baby sitting club is a central broker and maintains records of who is entitled to what baby-sitting credits. In this case the medium of exchange is baby-sitting hours.
In a similar vein I remember seeing a TV story about an enterprising single mother who had managed to completely renovate her home by creating a system of exchange with a number of local tradesmen. She went one step further than the baby-sitting club and introduced an exchange rate. Depending on the skill of the tradesman she offered a different exchange of her time.
We often get enquiries asking if we know about various changes in legislation that may impact Pronto Xi and/or our customers. Chances are that we do already know of upcoming changes but please continue to ask the question (Just in case we aren’t perfect). So how does Pronto Software stay informed of upcoming changes?
To prepare my 2011-12 tax declaration, I’ll log onto the ATO e-tax portal to see what information the ATO already knows about me. The online lodgement process will prefill all the relevant information the ATO has already collected about me.
So how does the ATO know so much about me?