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How to read your business performance summary

What the summary includes and how to read the numbers

After your quarterly review, we share a business performance summary. This is a concise document drawn from your Xero and Syft data to give you some helpful financial insights about your business.

What the summary includes

Revenue: your sales for the quarter, compared with the prior quarter and the same quarter last year

Gross profit and margin: what is left after direct costs

Net profit before tax: your bottom line for the quarter

Cash at bank: your closing balance at the quarter-end

Outstanding debtors and creditors: what customers owe you and what you owe suppliers

Estimated Corporation Tax to date: an indicative figure based on your profits so far

More than just a set of numbers

Your accountant carries out an analytical review of your results, comparing your performance against prior periods and looking for movements that need explaining.

The summary includes written commentary highlighting what has driven the changes in your figures, along with any trends or risks we think you should be aware of. Where relevant, we may also draw on industry benchmarks to show how your business compares with others of a similar size and sector.

The Corporation Tax estimate is indicative only. Your final liability is confirmed when your annual accounts and Corporation Tax return are prepared.

How to read the key figures

  • Revenue: compare to the same quarter last year to understand growth, and to the prior quarter to understand trend direction
  • Gross margin: revenue minus direct costs. If it is falling, your costs are rising faster than your sales
  • Net profit: what Corporation Tax is calculated on. Track it across quarters to estimate your annual Corporation Tax liability
  • Outstanding debtors: a growing debtors balance means customers are taking longer to pay. This will constrain cash even if profits look healthy

💡 Good to know: You do not need to be a numbers expert to get value from the quarterly summary. Your named accountant will give explanations of the key points in easy-to-understand language, and flag anything that needs attention or action.

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