CFO Consulting tailored for your growing organisation
Financial performance
As your financial performance manager, we focus on increasing revenue, controlling costs, analysing profitability, and measuring return on investment
What is financial performance management?
Financial performance management (FPM) refers to how organisations monitor, analyse, and improve their financial results. It includes setting financial goals, planning budgets, predicting future performance, tracking actual results, and making data-based decisions to stay on track.
​
That’s precisely what we can help you with here at The FD Consultant. As your financial performance manager, we focus on key areas, such as increasing revenue, controlling costs, analysing profitability, and measuring return on investment.
Align your financial strategy with your overall goals, work more efficiently, and adapt quickly to changing market conditions. Financial performance is not just about measuring performance; it's about actively managing it to achieve better results.
​
Our financial performance reports are flexible and tailored to meet the business's needs. Unlike external statutory accounts created for external stakeholders such as HMRC and regulators, the following can be provided to your management team as part of a regular bespoke Management Pack to help you run the business more effectively.
Rather than dazzling management teams with technical accounting terms and reams of numbers, we focus on making our information accessible and easy to digest. Providing relevant, transparent information helps our clients make better business decisions faster.
Management accounts
Management accounts are regular financial reports, typically prepared monthly or quarterly. They help business leaders track the business's performance and make on-time, informed decisions, which is vital for a well-run business.
​
These accounts allow leaders to compare current results with the business plan, budget, or forecast. They typically include key financial statements, such as the income statement, balance sheet, and cash flow statement.
​
They also provide details by department, project, or product line.
​
Management accounts are essential for planning, budgeting, and making daily decisions.
Internal reporting
Internal reporting is supplementary to management accounts and generates and provides both financial and operational information, as well as other key performance indicators (KPIs) within an organisation. This supports decision-making and performance monitoring.
This type of reporting can include dashboards with charts, tables and commentaries.
​
Internal reports provide timely insights that help teams respond to changes and solve problems. This keeps the business informed, aligned, and agile.
​
By comparing actual performance to targets, past data, or industry standards, companies can find their strengths, recognise inefficiencies, and identify areas for improvement.
​
Leaders can use the insights from business performance analysis to create strategies that support long-term success.
The FD Consultant provides financial performance management to SMEs across all sectors.
​
Please take a look at our resources and videos to get to know Romesh and the team at The FD Consultant and learn more about our insights and expertise.
FAQs on financial performance
1. What does “financial performance” mean?
Financial performance shows how well a business uses its resources to generate profit, control costs, and grow sustainably. We measure it using key indicators such as revenue, profit margins, cash flow, and return on investment. In simple terms, it indicates how financially healthy and successful your business is.
2. How can a business measure its financial performance?
You can track financial performance using tools like profit and loss statements, balance sheets, cash flow reports, and key performance indicators (KPIs). Important measures include gross profit, net profit, operating margin, and liquidity ratios. Regularly checking these figures helps you identify trends, manage risks, and make better strategic decisions.
3. Why is tracking financial performance important?
Keeping track of financial performance helps business owners see if they are growing in a healthy way, spending too much, or missing chances to improve. It is vital for managing cash flow, getting investments, planning for growth, and meeting financial responsibilities. Without this insight, decision-making becomes guesswork rather than a clear strategy.
4. What affects a company’s financial performance?
Many factors affect a business's financial performance. These include pricing strategy, cost management, efficiency, market demand, and competition. External factors, like interest rates and inflation, play a role. Good financial management and data-driven decisions help businesses adapt and stay stable during change.
5. How can your finance team help improve financial performance?
Many factors affect a business's financial performance. These include pricing strategy, cost management, efficiency, market demand, and competition. External factors, such as interest rates and inflation, also play a role. Good financial management and data-driven decisions help businesses adapt and stay stable during change.
