If you are not satisfied with the profit that your business is generating, the first person should call is your accountant. They are your most reliable advisor and the foundation of the financial sector. The first person who you must contact to guide you in expanding your business, especially your profit, is your accountant.
Accountants can identify ways to increase your profit that you may overlook because you are in there battling it out for profit and growth every day. Your accountant can help you improve your bottom line through these ways:
Your business operating costs can be evaluated by your accountant to find out which ones are too steep according to industry standards. Your business earns profit directly from the money saved by analysing your operating expenses.
Bargain for a better deal with your suppliers.
By scrutinising your material sources and evaluating your suppliers, your accountant can determine if you can bargain for better terms with your material suppliers.
Minimise disadvantageous debts.
Your accountant can make sure you don’t incur losses from bad debts by putting advising on a sound debt collection process. Your profits can easily be diminished by bad debts. You can revamp your current debt collection process and provisos of trade with suggestions for improvement from your accountant. Your cash flow and your profits could only improvement with these changes.
Remove loss-making goods or services.
The unprofitable products or services in your business can be reviewed by your accountant. The ones that have to be let go because they are costing your business money can be identified by your accountant.
You can save interest on your business loans by considering finance restructuring. You will improve your profit by saving on interest.
Maximise the price levels of your products or services.
Your accountant can scrutinise your pricing systems covering all products and services to find out if your pricing is in accordance with market expectations. Perhaps it’s time to raise your prices, which would significantly increase your profits.
Analyse the cost of labour.
You can also find out if you can use your labour in a more efficient manner with the help of your accountant. Saving on wages and ongoing labour costs can improve your bottom line.
Monitor the returns on advertising costs.
You can compute the rate of return of each dollar you spend on marketing and advertising your business through your accountant. This would allow you to determine if you are earning sufficient sales and more profit from this investment. A lot of business owners ignore how much they are financially getting from spending on marketing and advertising. They don’t know of the rate of return or whether it’s a profitable investment.
Create a business plan for profit.
You, with the guidance of your accountant, can come up with a business plan designed to improve profit. You must plan for your profit because it just doesn’t fall on your lap. Your business can benefit from having a flexible business plan that establishes important targets and plots a course of action towards profitability.
Know your important customers.
By reviewing customer database and figuring out how much profit each customer contributes to your business, you can identify which of your customers are most valuable. There are cases where your smallest customers are giving you less problems and the most profit, but they are being overlooked.
Seek the help of your accountant to improve your bottom line. You may have knowledge of the inner operations of your business, but your accountant has years of experience in helping other clients with their profitability. Use their knowledge and experience, and you will soon see your profits boom.
PJS Accountants offers expertise in helping improve your business and take it to the next level. We work to understand your business and its inner workings and how it can compete effectively in the present business environment. From this knowledge, we can come up with a custom plan to implement your business strategies and methodologies, boost profit and increase market shares. Contact PJS Accountants for enquiries.