Management Control: Managing Margins to Lead the Business

All entrepreneurs have a sense of how their business is doing. The key is to translate that feeling into concrete numbers and strategies.

Our goal is simple but ambitious: to manage corporate profitability with a strategic perspective.

We do this by transforming accounting data and historical information into operational decisions that generate results.

With our approach, we help entrepreneurs identify the levers they can leverage to reduce costs, optimize their sales mix, and maximize overall profitability.

From the past to the future: reading numbers to guide decisions

Starting from historical accounting data series, we build reliable forecasting scenarios and concrete action plans. The more cyclical the data, the more reliable our estimates become: every business has its own "rhythm," you just need to learn to listen to it.

We use the past—the balance sheet, often seen merely as a fiscal obligation—to guide the future.

Our method is based on the concept of Break Even Analysis but we apply it in an active, decisional way.

Instead of starting with revenue and "seeing how it goes," let's reverse the process: 1. Define fixed and variable costs (better yet, compressible and non-compressible). 2. Establish the Break-Even Point, i.e., the minimum revenue needed to cover all costs. 3. Design the Sales Budget, i.e., the target to be achieved to generate profit.

What if your budget becomes unreachable during the year? Don't wait until the end: take action. We implement strategies to reduce costs, optimize the sales mix, and focus resources on the highest-value products and customers.

Growing Profits: Budgeting as a Responsibility Tool

To increase profits, it's not enough to "work harder": you need to work towards clear, shared goals.

We define specific cost and revenue budgets, assigning direct responsibility to each company area. This transforms delegation into participation: employees don't "execute" but manage with awareness.

Over time, this culture of widespread accountability becomes a true driver of continuous improvement: when everyone knows what to measure, they also learn how to improve.

COGS: Knowing Your Costs to Earn More

Is it possible to improve profitability even without comprehensive industrial accounting?

Yes, if you start from COGS.

COGS (Cost of Goods Sold) represents the purchase cost of raw materials or goods sold, adjusted for the inventory delta.

A simple but very powerful fact.

Let's imagine that the average COGS ratio to turnover is 40%:

• a product with an incidence of less than 40% has high added value;
• one with an incidence greater than 40% erodes margins and competitiveness.

By applying bills of materials to sales, we obtain a true CAT of the company: a clear snapshot of the profitability of each product and customer.

This allows you to:

• push high value-added lines;
• optimize purchasing and production where raw materials weigh most;
• focus commercial efforts on what truly generates profits.

Clear, concrete, and immediate analysis—without the need for complex systems.

How We Work: The Predictive Analytics Simulator

We have developed a Predictive Analytics Simulator that applies advanced algorithms to historical accounting series, projecting

the company over the next 12 months.

The goal is to anticipate results, not suffer them.

The heart of the system is the Rolling Forecast Report, consisting of: 1️⃣ A revised company accounting report, which analyzes monthly variances and trends compared to the previous year. 2️⃣ A Profit and Loss Budget, which defines the annual cost and revenue target. 3️⃣ A Rolling Forecast, the dynamic forecast of the Profit and Loss Statement, which updates expected results month by month, based on actual data, and measures the distance from objectives. 4️⃣ A historical series of previous financial statements, which provides the statistical basis for evaluating cost and revenue trends over time.

The result?

A system that allows you to intervene sooner, not later. If the forecasts show negative deviations, the entrepreneur has the time and data to correct course.

Monthly reporting and control: managing your business with precision

Analyzing annual data alone isn't enough: a closer look is needed. By analyzing the data monthly, we calculate for each month of the year:

• il Break Even Point,
• the Sales Budget,
• hedging through open orders.

This dashboard becomes the company's true joystick: a tool for immediately understanding whether monthly goals are achievable and what corrective actions to take.

From forecasting to management: the next step

Together with the entrepreneur, we periodically review the data to transform forecasts into real actions: because numbers alone are not enough if they don't become decisions.

For companies that want to go further, we implement analytical-industrial accounting to identify margins by product, customer, or market and support:

• operational decisions (pricing, sales mix, continuous improvement),
• strategic choices (target markets, development plans, investments).

In short: Management Control is more than just analysis. It's the active management of results, a method and vision that transform the financial statement from a snapshot of the past into a tool for building the future.

Managing the financial area for sustainable growth

Financial risk is a real threat to every small and medium-sized business. Ignoring it exposes you to liquidity strain, difficult relationships with banks, and, in the long run, a drag on growth.

For this reason, managing the financial area is not an ancillary activity: it is a strategic function.

The goal is to make financial commitments consistent and sustainable with the actual performance of the business, identifying the most suitable financial structure and choosing tools, timing, and conditions consistent with the company's development prospects.

In other words: finance must follow business, not the other way around.

Continuous support for concrete results

We support companies constantly, guaranteeing tangible benefits:

• stable and structured presence in the financial area;
• transparent and constructive relationship with credit institutions;
• improvement of the bank rating;
• greater opportunities for access to credit.

Our work isn't limited to "crunching numbers" but rather to building trust in the banking system through clear data, solid forecasts, and consistency between strategy and finance.

Cash Flow and Treasury: Managing Financial Flows

A solid company is not the one that generates the most revenue but the one that manages its cash flow best.

We project the company's cash flow trends based on the monthly financial budget, verifying the evolution of financial needs and planning the most appropriate coverage.

This allows you to assess in advance the sustainability of the investments and their compatibility with the existing financial structure.

At the same time, we optimize treasury and operating cash flow through:

• budgets and periodic financial reports;
• reduction in the use of bank credit;
• containment of financial charges;
• targeted planning of incoming and outgoing flows.

The goal is clear: minimize dependence on banks and maximize working capital efficiency.

Tax planning and international group structure

For business groups with international presence, we design the most efficient international financial and corporate structure, optimizing national and international taxation and ensuring consistency with expansion strategies.

The result is a stable, transparent, and sustainable financial system, capable of supporting growth without compromising the company's economic equilibrium.

The Business Plan: The Compass of Every Enterprise

Writing a business plan isn't just a technical requirement. It's an exercise in entrepreneurial vision: it helps define goals, strategies, and growth paths, but also communicates credibility to the outside world.

In other words: the business plan is not just useful for "obtaining financing" but for understanding how to truly grow your business.

From plan to action: our operational support

We support entrepreneurs throughout all stages of drafting and implementing their business plan, making the project clear, measurable, and sustainable over time. Each plan is tailor-made, with an approach that combines strategic analysis, economic vision, and communication skills with the market and financiers.

Our industrial plans summarise the entire entrepreneurial project and become a tool for:

• internal planning and management control;
• external communication, especially towards banks, funds or private investors.

Main contents of the industrial plan

The following sections are developed and analyzed within the business plan:

• Presentation of the entrepreneur and management, with their experiences, roles, and key skills.
• Market analysis, competitor assessment, and identification of critical success factors.
• Sales objectives, marketing plan, business strategy, and competitive positioning matrix.
• Technical feasibility and three- or five-year economic-financial plan, with profit and cash flow projections.
• Total financial requirements, with details of coverage (equity, bank debt).
• Expected profitability and risk factor analysis.

From Document to Decision: Why a Business Plan is Essential

An effective business plan isn't a document to be filed away: it's a guide to action. It allows you to monitor project progress, check for deviations, and quickly adapt your strategy.

Every number becomes a tool of governance. Every forecast, a checkpoint. Every goal, a clear direction.

And above all: a well-written business plan doesn't tell a dream but builds a real enterprise.

Efficiency: When tidying up means becoming competitive again

We're talking about a company that chose to put its operations in order and discovered that efficiency can be the key to competitiveness.

📍Sector: processing and installation of glass for furniture, partition walls, parapets and industrial applications 💰Turnover: 13 million euros ⚠️Problems:

• delivery delays equal to 50% of the order backlog;
• inefficient production scheduling;
• staff with little autonomy;
• messy warehouse, with out-of-date stock;
• lack of precise data on real costs and production standards.

A context that many entrepreneurs know well: a lot of work but little real efficiency.

🔧 Our intervention

The first step was to completely redesign the scheduling and production flows: since the average delivery lead time was just 11 days from order placement, any error was enormous.

Concrete tools and methods have been introduced: 1️⃣ Phase schedules, to monitor production according to a "pull" model: each department produces only what is needed, at the right time and in the required quantities. 2️⃣ Weekly monitoring of workloads, to balance production capacity and deadlines. 3️⃣ "In-the-field" data collection on board the machine, with time and method analysis by department, to optimize batches and schedules.

📉 Result: Delivery delays reduced from 50% to 10%.

👥 People and autonomy

An effective reorganization isn't just about processes, it's also about people. We've introduced staff training programs with:

• clearly defined roles and tasks;
• procedure operative standard;
• shared business goals.

The result? Greater autonomy, involvement, and a widespread sense of responsibility at all levels.

📦 Warehouse and traceability

To eliminate inventory management inefficiencies, a barcode system was implemented to record loadings and unloadings in real time. A quiet but decisive revolution: guaranteed traceability and zero errors in warehouse flows.

💶 Industrial cost accounting

We implemented an industrial accounting system to calculate the hourly cost of each process (grinding, tempering, layering, etc.) and not per individual order. Each processing phase has been transformed into a profit center, providing management with reliable data to analyze profitability and guide strategic decisions.

📈 The final result

In less than two years, the company has dramatically reduced delays, improved operational efficiency, increased productivity, and, most importantly, regained control of its business.