When you have a small business, you may believe that you cannot afford accounting services. In fact, you cannot afford to not have accounting services for small business. The first benefit of accounting services for small business is being able to get a handle on cash flow and hidden expenses and increase profits in the process.
The sad truth in small business is that in many years at least half of small businesses do not make a profit or we unable to increase the profit they had previously seen. These businesses generally benefit from overhauling their business processes and that overhaul generally requires competent accounting services. Here is a snapshot of what is involved.
When your sales are down, simply trying harder is often not enough. Rather you need to adopt new strategies like cross-selling, adding service plans for products and cost-accounting your pricing to find the optimal levels for the most profit. All of this requires accounting services for small business.
As we noted, it may seem that paying for accounting services will break your budget. But, by finding hidden costs in your small business, you will generally save money. By using advanced accounting tools like QuickBooks Custom Reports, you will spot inefficiencies or, even worse, theft and be able to deal with them.
In too many small businesses, there is a sense of drama, or fatalism, in regard to profits (or loss) each month. When you work with Exigo Business Solutions for small business accounting services this is not the case. One of the approaches that we often recommend for our clients is to use the Profit First method. Using this method, you will take a profit each month from the very first time you use the system. And, you will exert better control over your budgeting and cash flow management. This works because of two things. First, you re-arrange the usual accounting formula so that you no longer say that incoming revenue minus expenses equals profit or loss. Rather you say that incoming revenue minus guaranteed profit equals the expenses that you will control.
As your accountant, we can advise you regarding how to get paid up front for your products and services. Prepaid vouchers, sold at a discount, are often great ways to bring in business and help you avoid needed to borrow. Memberships that offer discounted services work the same way and very commonly the members will not use all of their services, so you get “free money.” Accurate cost-accounting will help you decide which of these approaches will work out best for you.
In the last century a British Civil servant observed that the time required to do work tends to expand to fill all of the time available. This Brit was named Parkinson and the observation became known as Parkinson’s Law. Various additions and corollaries have been added over the years including the fact that money spent on a project tends to always use up the money budgeted (or more). The way to beat Parkinson’s Law is with accounting services for small business. By generating insightful reports you will see where money is being wasted and be able to institute measures (generally tighter control) to rein in expenses. Beating back Parkinson’s Law is one of the first things we do for our clients at Exigo Business Solutions.
Automation, like accounting services, may seem like something too expensive for your small business. However, like competent accounting services, automation can save money, reduce human error, and make your life easier. Contact us at Exigo Business Solutions for help deciding the types and levels of automation that you need.
Part of the problem small businesses commonly face when struggling to make a profit is being caught in the “survival trap” of constantly seeing minor problems pop up, applying fixes, and seeing the same or similar problems come back again and again. At Exigo Business Solutions we don’t just do your bookkeeping and accounting. We are Fix This Next coaches who will help you identify your nagging problems, fix them, and institute processes to keep those troubles from returning.
Efficient businesses are profitable businesses, as a rule. And, efficient businesses have effective processes. This is another place where we help our clients by instituting the Fix This Next system. When you started your small business, you could handle all of the details yourself. And, as your business grew, you needed to delegate. The problem that often arises is that you lose track of things. Effective business processes are the key to keeping you in touch with what matters in your business and still giving you time to work on what matters most and even have a personal life!
Although your business starts with an idea, you need to fill in the details to make it a success. This starts with a business plan. At Exigo Business Solutions we suggest Live Plan, an efficient way to put your thoughts into action and develop a smoothly running business.
When you have professional accounting services for small business, you will more easily and successfully cope with a business crisis. The keys to getting through a crisis in your business are relying on data and developing a solid plan. The temptation is to panic but with solid, professional accounting services, you will survive and prosper.
For help with accounting services for small business, contact us at Exigo Business Solutions in the Kansas City area.