This is the first of four tools developed by RSM to help smaller businesses and not-for profit organisations manage key financial aspects of their business.
Any manager interested in managing an organisation’s finances should be interested in using these or similar tools.
Break-even Analysis: This analysis will provide business information during the month to identify how the business is progressing towards its goals. This is the first step towards becoming aware of whether or not the business has had a profitable days work or not.
Along with the guide there is an excel tool as a template to complete the break even analysis. Copy and paste this link https://online.rsm.com.au/breakevenanalysis/rsm%20break%20even%20analysis.xlsm into a modern browser and it will be available to download.
While this and the other three tools could be used without professional assistance, we strongly recommend that in working through the input of the data and appreciating the resulting information, that organisations enlist the support of a qualified accountant or experienced book-keeper.
Indeed, while adapted to the needs of small and very small organisations to use on an on-going basis, this and the three associated tools providing financial analysis, are best used by accounting practitioners and their completion and interpretation should be supervised by someone with accounting or bookkeeping experience.