Theory and practice
The first articles by FM Studio Consulenza: controlling explained step by step, from accounting to the financial statements, from break-even to the budget, through to how the company is organised. In the order in which they came out.
Financial accounting explained (really) in plain words
No. 1
Together we will set out on a structured journey to talk about controlling but, to do so, we first need to understand where the numbers come from, so that we can then interpret them.
Company financial statements explained (really) in simple terms – Part I
No. 2
Accounting helps us tell the story of the business through numbers: now it’s time to understand where all these numbers come together.
Company financial statements explained in simple terms - Part II
No. 3
Having learnt how the Balance Sheet captures the structure of the business, it’s time to set that picture in motion.
Why the cash flow statement is an essential tool
No. 4
The balance sheet and the profit and loss account say a great deal about a company.
The numbers that really matter: reading the financial statements to steer the business
No. 5
The balance sheet, the profit and loss account and the cash flow statement tell the story of the company: now it’s time to understand how to read them to make real decisions.
When debt speaks: the indicator that reveals a business crisis
No. 6
In previous posts we learned how to read financial statements, but one fundamental issue remains to be addressed: knowing how to recognise the warning signs of a crisis.
Optimising cash flows: much more than “getting on with the bank”
No. 7
Financial statements and performance indicators help us understand the health of the company, but there is another aspect that separates those who react from those who anticipate: the management of cash flows.
Controlling? In SMEs it is still an optional extra
No. 8
Controlling is not a luxury. It is a matter of survival, yet it is still seen as something “to do later”, when there is time, when the company is bigger.
Controlling does not mean “doing the accounts”
No. 9
And yet how many SMEs still confuse them? Many business owners believe that having up-to-date accounts or efficient management software is enough to know how the company is doing.
The consulting that really matters: why tax advice is not enough
No. 10
Talking about method, numbers and control is important, but there is one aspect that deserves attention: the difference between those who manage the accounts and those who help the business grow.
Controlling: the essential steps to avoid leaving your company to chance
No. 11
Many business owners believe they have everything under control until the numbers speak for themselves but, with the Italian Business Crisis Code, having clear tools to monitor and steer the company is no longer an option: it is a necessity.
Data culture: the real hidden resource of SMEs
No. 12
In many SMEs the data exists but stays locked away in digital drawers: endless reports, Excel files everywhere, charts that nobody really looks at.
Digital complexity syndrome in SMEs
No. 13
For years the market has been pushing a seductive narrative: “digitalise everything and you will be more efficient, faster and more competitive”.
How to truly understand the break-even point: the power of reclassifying the financial statements
No. 14
Of all the tools a business owner can use to understand whether the company is really making money or just spinning its wheels, reclassifying the financial statements is one of the most underrated.
From calculation to control: the real value of the Break Even Point
No. 15
Every business owner knows the concept of “breaking even” but hardly anyone really uses it as a strategic compass.
Cost analysis: the lens that separates real margins from illusions
No. 16
There is a truth that invariably emerges when you get into a company’s numbers: many decisions are made without really knowing what they cost.
Profitability by product line: what the financial statements don't tell you
No. 17
In previous posts we got to grips with the logic of the Break Even Point: now we’ll start to understand where the money is really made.
Does the market decide the price? No. Your cost structure does
No. 18
Let’s continue our journey through informed business management.
The problem isn’t the price. It’s how you build it
No. 19
Many companies are convinced they have a sales problem. “The market doesn't pay.” “Customers haggle over price.” “The competition is aggressive.”
You don't need cost accounting to understand where you are making money
No. 20
You need to start by asking yourself: “But what am I really making money on?” Many think that without an advanced cost accounting system it is impossible to answer, but that is not the case.
Do you really want to understand where you make money? Then you need to change perspective
No. 21
Once you have started reading COGS and margins, the next level follows: understanding how income is generated.
Without a budget, you are not running the business. You are reacting
No. 22
Once you understand how to build a price, where margin is generated and how to analyse it, you reach the highest level: deciding where you want to go.
The budget is not a forecast. It is taking a stand
No. 23
The budget is one of the most underrated tools in SMEs: not because it is useless but because it is used the wrong way.
The rolling forecast: a little-known but essential tool
No. 24
Preparing a budget is important, but stopping there is a mistake, because the budget has a structural limitation: it is static, built months in advance, on assumptions that can change quickly.
Profit isn’t found. It’s built
No. 25
Many business owners “feel” how their company is doing, and they are often right, but there is a limit: gut feelings are not a management system.
From controlling to control of the future
No. 26
Many business owners know all too well the feeling that something in the company is not heading in the right direction: the problem is that feelings are not enough and, often, the numbers are only looked at once the problem has already become an emergency.
“I don’t need a controller. I already have an accountant”
No. 27
That is what a business owner told us at our first meeting. His financial statements showed a profit and his turnover was good.
Manufacturing businesses and controlling
No. 28
Let’s get to the heart of the more technical side of controlling: that of mechanical engineering companies.
When the company grows but the organisation stands still
No. 29
It happens more often than you might think. The business grows, the market responds, customers increase but, beneath the surface, something starts to creak.
Many business owners think they have everything under control
No. 30
In reality, they simply carry everything on their own shoulders, and this is where one of the biggest limits to SME growth arises: the inability to truly delegate.
The real problem isn’t the work. It’s how it is organised
No. 31
Many companies are organised by function: production, administration, sales. Everything is divided, everything is assigned: it looks like organisation but, in reality, it is more often fragmentation.
The companies that really grow are not the ones that work harder
No. 32
They are the ones that work best, because continuous improvement does not come from improvisation but from clear, shared and verifiable company procedures.
Many companies think they have a good sales process
No. 33
But then they discover that orders are still managed with Excel files, scattered emails and manually entered information.
Overlapping roles in SMEs are a real problem
No. 34
In a company that builds mechanical plant to order, we found ourselves faced with the classic “indispensable” figure: the business owner’s right-hand man, a respected person, present everywhere, involved in everything.
“In our company we all do a bit of everything.”
No. 35
It’s one of the things we hear most often in SMEs, and it’s also one of the main reasons why many companies grow in a disorderly way, creating overlaps, decision-making conflicts and operational inefficiencies.
The purchasing department does not just place orders
No. 36
In truly well-organised companies, the Purchasing Manager is not simply someone who carries out tasks but a strategic role.
Why Fractional Management is the right solution for SMEs
No. 37
In our recent posts we have talked about controlling, organisation and synergy between skills.
How to (really) reorganise a company: case history no. 1
No. 38
We are not talking about theory but about reality. About a real business, with real problems and a growth path built step by step, with method, vision and courage.
Your stock is your bank. But without the IBAN
No. 39
In a business, what seems “normal” is often what locks up liquidity. And among all the invisible blockages, there is one that keeps making itself felt without saying a word: inventory.
How to manage generational handover in a family business
No. 40
We have often talked about control, method and strategy, but there is a moment in the life of every business that truly puts all of this to the test: the generational handover.
How to (really) reorganise a company: case history no. 4
No. 41
“We do have a strategic direction. It just changes every two weeks.” It’s a real quip, made by a sales manager at an SME during an internal meeting.
How to (really) reorganise a company: case history no. 5
No. 42
In many industrial companies, volume grows… but margins don’t. Why?