When it comes to ways to boost profits, many businesses will look at increasing sales, targeting repeat customers, streamlining costs or boosting marketing. Getting a good accountant may not be top of this list. However, the reality is that if you have the right accountancy support then you’ll get the guidance that you need to implement changes and free up resources to do all these things and, ultimately, run your business more profitably.
Eliminating the issues
A good accountant will enable you to reduce your bad debts, overhauling the way that you collect what is owed to make it more efficient and effective – delivering 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 the biggest issue to profitability is underperforming lines of products or services then your accountant can also help you to identify which of these is the most problematic and help to streamline what you offer.
When you’re running a business there is little time to ensure that the resources you’re using are giving you the best returns. A good accountant will be able to work out whether loans or overdrafts, investor terms or credit cards could be restructured so that you’re paying less for what you borrow and freeing up more cash as a result.
When did you last carry out a pricing review of the business? This important role is something that the right accountant can do to ensure that you have the right 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 as it could be if it charged more or dropped its prices in line with customer expectations.
Expenses and costs
When it comes to reviewing expenses and costs there is a lot that a good accountant can do to help your business do better. 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. A good accountant will also be able to carry out a full review of your operating expenses to show you where savings could be made.