When it comes to boosting profits, many businesses will look at increasing sales, targeting repeat customers, streamlining costs or marketing.
Getting a good accountant may not be top of this list. However, if you have the right accountancy support then you’ll get the guidance that you need to implement changes, free up resources, and ultimately run your business more profitably.
Eliminating the issues
A good accountant will work to reduce your bad debts and overhaul the way that you collect money. This improved efficiency will bring an instant uplift to your bottom line.
An accountant will also be able to review payment policies and set clear new terms to those who you invoice.
If under-performing lines of products or services are denting your profits, then your accountant will help you to streamline what you offer.
The time pressure of business leaves you with little time to check that you’re getting the best returns from your financial resources.
A good accountant will be able to work out whether loans, overdrafts, investor terms or credit cards could be restructured. This will mean you’re paying less for what you borrow and free up more cash as a result.
When did you last carry out a pricing review of your business? This important task is something that the right accountant can do to improve your pricing strategy.
If your pricing doesn’t match up with the market, this could be one of the reasons your business isn’t as profitable. Consider your customers and bring your pricing in line with their expectations.
Expenses and costs
A good accountant will make several suggestions when reviewing expenses and costs. For example, you may be able to get a better deal on raw materials or contracts with suppliers or there might be a more efficient way to organise your workforce.
Your operating expenses are also a good source of potential savings. Ask your accountant to carry out a full review of your overheads and discover how they might be reduced.