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The new year is a great time to help our business clients reflect on the last 12 months and strategize new ways to improve their bottom line. This means a detailed analysis of the financial situation of past financial years to help understand the causes of financial problems or significant sales trends. More importantly, we help them identify new ways to increase their overall profits.
If we can help our business clients discover new tactics to maximize their profits, we can lead them to greater success and growth. CEO of CMA Exam Academy (Certified Management Accountant Exam Review Program) and In my experience as a founder, I have found some useful ways for companies to make money.
Help find waste in each business process
In the day-to-day operations of a client, they may not even be aware of the costly waste occurring across the enterprise. From overstaffing delivery vehicles to wasting raw materials in production workflows, overlooked waste can reduce your business’s profit potential. It is imperative that you sit down with your business client and ask them to take you through all of their company’s business operations. Be sure to inquire about equipment to do. It may take some time, but the cost savings are well worth the effort.
For example, as we guide you through our normal shipping process, we ask about the packaging materials used for each shipment. When presented with a list of packing materials, ask about cheaper alternatives. please think about it. If a client makes 5,000 sales a month and uses cheaper packaging to save just 20 cents on each shipment, in the end it saves him $1,000. This newfound funding can be used to purchase necessary equipment or new Google Ads campaigns to reach more potential customers.
Encourage skill set mapping to improve job performance
Business clients can reduce efficiency and output (and thus profits) by simply assigning the wrong employees to different tasks. Encourage clients to map out their employee skill set, as each member of staff has its own strengths and weaknesses. One easy way to do this is to create a Google Spreadsheet with “Skills” written in bold at the top of the first column, and create all the various skills required for your project listed below it. is to Examples include social media networking, data analysis, creative writing, accounting, and telephony.
The client can then write each team member’s name in bold at the top of each successive column. Help me move down each column and use a check mark to indicate if I have the skill listed at the beginning of each row. With this visual aid, clients can easily see which employees are good candidates for projects other than their assigned project. This skill set map makes it easier for clients to determine who to assign new tasks to in the future, optimizing the delegation process.
Skill set analysis shows that one rep assigned to respond to customer service emails is slower to type than others and takes longer to draft each email reply, resulting in lower sales. Clients may notice that it is slowing down. The client may then find that this employee is much more proficient in voice communication and should supervise the handling of incoming customer calls. Or the client may find that she one assigned to post on her media social is good at data analysis. Skillset Her mapping helps clients maximize efficiency, work output, and profits across their workforce.
Evaluate budgets and actual spending to reduce costs
It’s easy for clients to keep their regular financial analysis on the back burner when new projects arise. However, the beginning of the fiscal year is a great opportunity to review your monthly budget, actual expenses, and unnecessary expenses. Do budgets need to be adjusted to accommodate new employee salaries or monthly bulk orders for new product lines? Adjust budgets as necessary to reflect changes since the last financial analysis make it possible.
Next, we discuss monthly recurring costs, such as different employee salaries, customer relationship management and time tracking software subscriptions, brick-and-mortar store rent and utilities. Helps identify other recurring expenses they forgot but still pay monthly. By doing this, he realizes that he is still paying for ongoing online advertising campaigns that he no longer uses, cloud-based communication platforms he no longer uses, subscriptions to his SEO tools that he no longer needs, etc. can be understood. Reducing these unnoticed costs can significantly improve your bottom line.
put it all together
You are a financial expert for a business client. Work with your business clients to find waste in each business process and help them find new ways to reduce costs, increase profits and improve bottom line. It also helps plan each employee’s skill set to improve efficiency and work output. Finally, we’ll look at your monthly budget, adjust it as needed, and assess all of your actual spending to help you spot any overlooked costs. These are three small but impactful ways to help your business client reach his full financial potential in 2023 and beyond.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., publishers of Bloomberg Law and Bloomberg Tax, or their owners.
Author information
Nathan Liao Founder and CEO of CMA Exam Academy. As a CMA coach, Liao has trained accounting and finance professionals in over 80 countries and has been certified as a Certified Management Accountant in just eight months.
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