…in your business?
You, a colleague, your accountant, a business advisor?
Who keeps a watching eye on and controls cost At all times, especially now when things are tight its vital to manage costs closely. Micro managing can be incredibly time-consuming and time spent can reduce costs but does it have a detrimental impact on another area of the business which has been neglected?
Who decides when to ditch loss making customers/business? “Turnover is vanity, profit is sanity…and cash reality”. Yes we all want to grow our business and hate it when turnover decreases as this is a macho measure of business performance. In the cold light of day though its cash in the bank which is a far better indicator of how financially robust your business is.
Yes you need sales, but without profit and cash there’s no point. So review you sales, perhaps client by client, apportion costs and see who is under performing.
Who decides when to increase prices “Increase prices are you mad”! Ok, well sometimes it’s not a good idea, but if you have a client which is loss making you need to either increase prices, reduce cost or lose the client.
For many business owners working at the coal face it’s often difficult to take a step back and analyse, interpret, comment and make decisions based on financial performance detailed in a meaningful set of management accounts.
Rather than spend money on recruiting an in-house accountant, using a business consultant or trying to do it yourself, why not ask your accountant to do it.
What does your accountant do? How about asking your accountant to produce a quarterly report and perhaps present it at a quarterly management meeting. The fees should be relatively low and hopefully will pay for itself by generating meaningful information which is used to help make better business decisions and increases profitability and improves cash flow.
After all your accountant is supposed to be your “trusted business advisor”.
Slave driver? So, armed with up to date and relevant business information you can be the one who doesn’t just crack the whip, but drives the business forward.