What we know about B2C businesses
B2C (Business to consumer) businesses are defined by the nature of their demand: cyclical or consistent. For instance, cold weather stimulates spending on expensive winterwear, holidays and Christmas, while companies involved in food provision may experience regular demand throughout the year. Cyclical businesses, like house builders, often experience irregular cycles — such as higher demand when government initiatives come into effect (e.g. Help to Buy). Despite their diversity, consumer businesses all share a sensitivity to changing habits or trends.
What we recommend
Successful consumer businesses keep up-to-date with changing habits or trends, with a view to generating sales. We believe these companies must have access to regular and insightful internal management reporting, as well as access to wider market research. This kind of data can be obtained for a monthly fee and provides consumer purchasing data (volume & value) in a broad range of markets.
Empowering SME managers
Management Accounts are not limited to a high-level Profit & Loss. Consumer businesses often need a more detailed look at sales and profit in specific market segments, product categories or product lines. Consumer goods or services businesses may also benefit from an analysis of pricing — and for companies that purchase or sell abroad, forex impact. These insights empower SME managers to make strategic decisions based on data.
You'll probably need an accountant if...
Under FRS102, SME companies are required to recognise revenue based on conditions set out under Section 23: Revenue Recognition. The standard states that an entity must recognise revenue from the sale of goods when all the following conditions are satisfied:
- The entity has transferred to the buyer the significant risks and rewards of ownership of the goods;
- The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- The amount of revenue can be measured reliably;
- It is probable that the economic benefits associated with the transaction will flow to the entity; and
- The costs incurred or to be incurred in respect of the transaction can be measured reliably