Keeping Accounts in your Vending Business

Most Antares operators will find everything they need on their balance sheet and income statements that they keep for day to day accounting purposes. Not every operator keeps financial information according to the same format. The key important elements are income, which every operator should know, along with assets and other information that is typically included on a company’s profit and loss statement.

For those Antares operators who are struggling with the financial aspect of running the business and keeping track of figures like income, assets and expenses, there are several excellent accounting packages available.

While gathering the information can be time consuming, it pays off in a variety of ways. Small operators just need to understand that in the vending service, they must continuously think about their future capital needs. Vending is a very capital intensive business.

Key consideration: return on assets

This is not a bad thing; new equipment usually is better. Better equipment can bring more sales. There are many instances in which vending operators have been able to win business because they offered a piece of equipment with new features. An excellent example of this is the guaranteed product delivery feature in many new Antares Corporation vending machines.

Ratios track certain relationships

As the Antares vending company grows, the costs will also increase and hopefully, the sales will as well. The financial ratios will keep track of the relationship between expenditures and sales, and account for all the line items that contribute to both.

The financial ratios give management the measurement tools it needs to know how a particular investment affects the company’s financial health over a period of time. As a company’s overhead needs increase, a business will naturally look to financing more of its expenditures. If they do not have accurate financial information and their financial ratios are not in line, they will have a hard time securing funds to grow the business.

Key variables to understand

Once an operator has evaluated the basic gross sales, net sales and overhead, the next most important ratios to evaluate are four other critical profit variables:

· Sales per employee, an excellent measure of employee productivity.

· Gross margin percentage, which reflects the ability to manage cost of goods sold effectively.

· Operating expense percentage, this focuses on expense control.

· Inventory turnover, which reflects how well inventory is managed.