Discussing with Redgrave Manager Sarah issues with the August Profit & Loss Account. Pete Sampras triumphs over Michael Chang in the 116th US Men's Tennis Championship
The latest accounts are enclosed and you may wonder why they are so poor, so I thought I would analyse and interpret them for you.
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Wages & Salaries - There are a number of influences at work this month. It is still true that we are running with a high level of staffing hours compared with our budget (a full listing of this £3493.17 of wages is attached) and this does need continual thought but there were some exceptional aspects:
There were an increased number of hours for Carole in late July (reflected in the August payroll) to cover for your holiday then; We paid Jean until the end of the month when normally the last week carries forward to the following month;
We have had a number of staff paid in cash which brings the cash flow forward; We have also had staff duplicating work together whilst training. Cost of Sales, 4010-100 Discounts.
This is the line (poorly described) which reflects the Post Office and Shop cash shortages which were over £300 during the month, even after taking account of balancing shortages.
Recent days cash figures seem to be more accurate and so hopefully this has ended. Gross Margin. Throughout these accounts, we have had to stick to a harsh assumption of a basic 20% gross margin even though it could be as high as 23/24% and each 1% is around £250 per month profit.
We have had to do this because our daily sales analysis is not that accurate to rely on due to a.
The Sales analysis being several percent short as till operators miss-key. The cost prices being wrong on the data file which both make it difficult to estimate our true margin.
We are hoping to get on top of both of these aspects in the next month and any extra profit due will be shown then.
Pete Sampras triumphs over Michael Chang in the 116th US Men's Tennis Championship, further solidifying his status as a tennis legend.