If you have a business that is not making as much profit as you would expect, growth is automatically slow, and your accountant is the best person help. A well-trained accountant is well equipped with all the transaction details of your company and given a chance, he/she can work a miracle that would turn profits around. Failing to break even is a result of several business imbalances that either inflates your expenses or fewer sales. Your accountant is the cornerstone of your finances in the company, and in many cases the most ignored personnel yet his input can bring a fast turnaround of your fortunes. Below are some of the key interventions an accountant can help your business grow.
- Your accountant can give detailed analyses of your expenses and provide credible input on how to control them. For instance, an accountant will help you see high operating costs based on industry benchmarks and propose ways of working mitigating them to directly increase your gross profits.
- Reducing bad debts has a direct impact on the actual value of your business as it directly affects the balance sheet. Besides, your accountant can create an efficient debt management system that prevents your business from incurring some obvious losses due to bad debts. Canceling debts means your business has lost some potential revenue and accounts are best known for their ability to collect debts. Your account can have a complete overhaul of the debt collection policies of your company keeping your debts at healthy levels.
- Accountants can make use of their knowledge in the cost-benefit analysis to eliminate unprofitable products and service from your business. Besides, they can remove products and services that require the input of lots of resources to ensure the firm offers products that require less cost of production. Reviewing the margin levels of each product is an essential element that can boost your profit levels and enhance the efficiency of your business. Your accountant will advise you on what to drop as some products are likely to injure the image of business further lowering the profitability of your business.
- Restructuring of your finance policies at some is crucial. Your accountant will look at policies that help you reduce funds used to service interest from loans. The financial restructuring ensures your business is able to service its loans on time and control the amount of borrowing and offering of goods on credit. Consequently, cash flow is enhanced resulting in the availability of more money for the business to invest. Such policies will result in more direct growth within a short period.
- Your accountant can help you charge your services and products at optimum levels ensuring you charge clients value for money and you are able to break even. A company’s pricing systems plays a very critical factor in ensuring maximum profits for the business. For instance, you can consider offering discounts to cash buyers to motivate clients to make cash purchases. Besides, reviewing the price mechanisms ensures your prices are in line with the market expectations. Maybe, your accountant will advise of an overdue price increase which will increase your gross profits, and translate to eventual business growth.
- Your accountant can help you review the cost of labor in your business. Maybe you are paying your workers way beyond your business capacity, or you are underpaying your workers which result in the lack of motivation by your workers. Besides, your accountant will advise you on the best way of utilizing your labor. Implementing of such suggestions is a sure way of boosting your savings on wages and ensuring your workers give their optimum output for the growth of the company. Taking care of your employee’s needs such as synchronizing them with the current labor laws and costs motivates them to work better giving you value for money and growth is inevitable.
- Your accountant can track the impact of your advertisements costs to your business. Many business owners do no monitor the return effect of their marketing costs to their activities, and as a result, they do not fully exploit the potential of their business. Advertisement is meant to upscale your sales volumes and tracking them gives you credible feedback on what to do.
- Planning for future growth and the path your business should take is very important in making sure your business stays on course. Continuous monitoring of such a goal by your accountant helps you plan for profits ensuring you put the money into good use. Besides, your accountant will help your business be as flexible as possible to ensure your business stays ahead of competitors.
- Your account will help your identify valuable customers and suppliers. Making an audit of your vendors and clients helps you release business partners that add little or no value to the overall growth of the firm. You need to have to customers and suppliers who give you the least headache to help you concentrate on adding value to your business.
- Accountants can be the best of negotiators. Your accountant can negotiate with your suppliers ensuring you get raw materials at a subsidized cost. Accountants usually have the knowledge of the current rates of various materials as they want to give a fair value of all the purchases. Besides, they can easily compare the prices of different suppliers and settle on the vendor with the lowest rates.
As such, get your accountant in the running of your business and growth is inevitable.