We help manufacturing businesses to prepare annual budgets so they can set targets and measure their performance against those targets.
This process typically concentrates initially on finance based Key Performance Indicators (“KPIs”) such as the level of turnover, the gross profit percentage achieved, the level of staff costs, cash flow, stock levels, working capital requirements and the return on capital employed.
We also help our manufacturers to identify non-finance-based KPIs appropriate to their business.
For example, a manufacturer aiming for the top end of his market and producing small quantities of top quality, high value goods using high cost components should not be using KPIs that overemphasise production line speed.
He should be using KPIs focused on production line errors and on ensuring consistently high quality. These might include the number of items rejected in production, the number of customer complaints and the number of items returned by customers, all of which fit in with the manufacturer’s strategic plan of aiming for the top end of the market.
We are able to assist a number of our manufacturing companies to make claims for the generous tax allowances available for expenditure on Research and Development. These currently run at a rate of up to 125%, meaning that for every £1,000 actually spent on R&D, the company can claim a deduction from its profits of £2,250. Not all companies eligible for these reliefs are aware of them – if you are concerned that your company may be missing out, please contact our Tax Partner, James Bailey.
For further information please contact one of our Manufacturing team: