19 Feb 2024
As the cost of doing business rises, it’s more important than ever to ensure that your business is as efficient as possible. Efficiency is all about doing more with less, which is why it’s the key to boosting your profitability without raising your prices.
Let’s take a look at three ways you can increase efficiency in your small business to keep more of the money you make.
- Investing in digital tools
The first step to increasing efficiency in your small business is investing in digital tools.
Technology has come a long way in recent years, and there are now a number of software applications and online platforms that can help you streamline various aspects of your business.
For example, using an invoicing application can save you a considerable amount of time compared to creating and sending invoices yourself.
In some cases, digital tools can help you to fully automate tasks but even when this isn’t possible, they can still improve communication and lead to more efficient processes.
Furthermore, the right digital tools will create greater transparency in your business, which is another key element of efficiency.
When everyone has access to the same information and knows what needs to be done, it’s much easier to avoid duplication of effort and get tasks completed quickly.
Here are a few digital tools that can help you increase efficiency:
- Project management software – project management software can help you keep track of deadlines, assigned tasks, and progress reports. This is an essential tool for any business that wants to increase efficiency.
- Communication platforms – a good communication platform will help you to communicate with employees, customers, and suppliers quickly and easily. Slack is a popular option for businesses of all sizes.
- CRM software – customer relationship management (CRM) software can help you to track customer interactions and data. This is valuable information that can be used to improve your marketing and sales efforts, as well as your customer service.
2. Motivating team members
It’s important to remember that no matter how good your digital tools are, they won’t make much difference if your team members are not motivated to use them. This is why it’s crucial to create a working environment that encourages and rewards efficiency.
There are a number of ways you can do this, but one of the most effective is to make sure that everyone understands how their role contributes to the success of the business.
When team members feel like they are part of something larger, they are more likely to be motivated to do their best work.
In addition, it’s important to set clear goals and expectations for employees. When people know what is expected of them, they are more likely to meet or exceed those expectations. Finally, be sure to give employees the autonomy they need to do their jobs efficiently.
Micromanaging will only lead to frustration, damaged morale and decreased productivity.
3. Highly targeted marketing
The third step to increasing efficiency in your small business is to invest in highly targeted marketing. Marketing that is not targeted is a waste of time and money, and it can actually end up doing more harm than good.
What does it mean to “target” your marketing?
It means creating ads and content that are specifically designed for your ideal customer. To do this, you need to have a good understanding of who your target market is and what they are looking for.
It’s also about using the right channels. A billboard, for example, is seen by anyone who drives by whereas pay-per-click ads can be specifically targeted to people who are searching for the products or services you offer. This allows you to get more out of your marketing budget and ensures that your marketing efforts are as efficient as possible.
Final thoughts
The bottom line is that increasing efficiency in your small business is crucial if you want to succeed. By streamlining processes, investing in the right digital tools, and motivating your team members, you can create a more efficient business that will be better positioned to compete in today’s marketplace.
Book a free call with us by visiting our website here.
19 Feb 2024
After a period of growth, you may be wondering whether or not it’s time to hire a CFO for your small business. On the one hand, CFOs offer top level financial advice and expertise that can take your business to the next level, but on the other, they are expensive and you may not be ready to commit to an in-house hire.
What is an Outsourced CFO?
An outsourced CFO works part-time with you, and usually remotely. This means that you have access to expert financial guidance as and when you need it, without the commitment or cost of an in-house hire. For many small businesses, this is a convenient and affordable option that can really take them to the next level and transform their profit margins.
Let’s take a look at how an outsourced CFO can drive up your profits and transform your business.
Labour Cost Management
As your business grows, you will need to take on more team members and the cost of this can be very difficult to manage. Timing is crucial. If you hire new staff too early, you put your cash flow in jeopardy. However, if you hire too late you will antagonise your existing staff by overworking them and compromise the quality of service your customers receive, too. A virtual CFO can optimise your hiring process by helping you to understand when it makes financial sense to hire and when to hold back.
Debt Management
Whether you currently have debt or it’s part of your growth strategy, an outsourced CFO will prove instrumental in helping you to manage your credit well.
A significant amount of debt can really eat into your profits. An outsourced CFO will create a debt reduction plan to get you back on track and maximise your margins.
Meanwhile, if you anticipate going into debt prior to a period of growth, your CFO can devise a strategy to mitigate the risks and optimise your liabilities to help you achieve your goals.
Budget Tracking
Many business owners create a budget, only to get side-tracked and forget all about it. An outsourced CFO can not only help you to craft a realistic business budget that supports your goals, but analyse your actual reports in order to track how well you are sticking to it. This data can then inform future planning, help you make well-timed investments and allow you to create more accurate financial forecasts.
Cost Control
In order to maximise your profits, you need to keep your costs as low as possible without compromising your business. An outsourced CFO can help you to implement efficient cost control by identifying costs that you can reduce and carefully tracking your variable expenses. This gives a significant boost to your bottom line as well as improving your cash flow.
Planning for Growth
A lot changes as your business grows. If you fail to prepare properly, you might find yourself face-to-face with a financial disaster. The financial acumen of an outsourced CFO is invaluable when you are preparing for growth. Their vast experience allows them to offer expert, impartial advice, act as a well-informed sounding board and help you avoid financial pitfalls.
Summary
If your business needs financial guidance but you’re not yet ready to hire an in-house CFO then outsourcing is a fantastic solution. This gives you access to top-level financial advice that will steer your business towards success without breaking the bank, thus maximising your profit margins.
Book a free call with us by visiting our website here.
19 Feb 2024
As a small business owner, the likelihood is that bookkeeping isn’t your favourite task. It is, however, extremely important in order to establish a profitable and financially healthy business that will be around for years to come. Compiling accurate financial data allows you to make informed decisions about the future of your business, whether that’s scaling up, cutting costs or identifying potential problems before they do any real damage.
Bookkeeping may feel like a headache sometimes, but we’ve got five simple tips to make it easier and help you to stay on top of your financial information.
- Update Your Books Regularly
Do you look forward to balancing your books every week? Probably not. But it’s important to get into the habit of regularly updating your records. The little-and-often approach certainly beats dedicating your entire weekend to bookkeeping because you procrastinated for too long.
Furthermore, mistakes and problems compound over time; a small mistake in July could turn into a huge headache if you don’t notice it until December. Staying on top of your records allows you to solve problems quickly and efficiently, rather than trying to untangle a big web of errors.
Set aside a regular time slot each week for bookkeeping. If you know you’re likely to put it off, push it to the top of your to-do list and get it done first thing in the morning. Use this time to send invoices, look at your cash flow and track your costs. It’s much easier and more manageable this way.
- Separate Your Personal and Business Bank Accounts
It’s always smart to separate personal and business affairs, and your bank account is no exception. If you use the same bank account for personal and business transactions, it becomes incredibly difficult to separate the two and this may lead to expensive mistakes on your tax return.
Furthermore, mixing your personal and business finances can make it difficult to keep track of your spending and calculate your profits accurately. It also appears unprofessional to credit lenders and potential investors, and thus may impede your growth.
The best way to keep your personal and business finances separate is to open a business bank account to keep your financial records as transparent as possible. This will save you from having to spend hours trying to remember whether a transaction was personal or business-related and thus greatly simplify your bookkeeping.
- Stay Organised
In addition to keeping accurate records, it’s important to stay organised so that you can locate your files quickly and easily when necessary. This will save you a huge amount of time when reviewing your records and help you to avoid mistakes and lost data. If you keep your records electronically, use cloud based software or make sure that you perform regular backups to avoid losing documents. - Ask for Help
Business is not a DIY affair and if you’re struggling with your bookkeeping, it pays to ask for help sooner rather than later. For example, it can be difficult to know which categories to file certain costs under and what does and doesn’t count as a business cost. When doing your own bookkeeping, you’re also likely to make errors which lead to a lot of wasted time and even mistakes on your tax return. Needless to say, this is very bad news for your business as you could face penalties.
Outsourcing to a professional bookkeeper is the best way to save time and money for your business. It will not only ensure that your records are accurate, but also allow you to put your time to better use and focus on growing your business.
Summary
Bookkeeping is an important part of being a business owner, so don’t neglect your books or you’ll certainly pay for it later. Furthermore, it’s in your best interests to pay close attention to your books since this data empowers you to make smart financial decisions which will help your business to grow and thrive. If bookkeeping is causing you stress and anxiety, following the above advice will help you to simplify the process and get back to doing what you do best.
Book a free call with us by visiting our website here.
2 Feb 2024
Bookkeeping: you might think of it as just another expense, or at best, a way to keep track of where your money’s going. But what if we told you that good bookkeeping isn’t just about spending money wisely, but actually making more of it? Intrigued? Stick with us, and we’ll show you how keeping your books in order can actually put more cash in your pocket.
Your sales and services
First off, let’s think about your sales and services. With solid bookkeeping, you can easily see which parts of your business are really bringing in the revenue, and which are distracting you. It’s like having a map that shows you where the treasure is buried. You might discover that a particular product or service you offer is a gold mine you’ve been overlooking, or maybe you’ll find out that it’s time to say goodbye to something that’s not really paying off. This insight alone can help you focus on what works and boost your income.
Spending
How about spending money? It’s not just about cutting costs; it’s about spending smart. Think of bookkeeping as your financial GPS. It helps you navigate where your money should go to make your business grow. Maybe you’re spending too much on something that isn’t really helping your business, or perhaps there’s an area you should invest more in. Good bookkeeping shines a light on these decisions, so you can spend your money where it counts and see your profits grow.
Decision making
Here’s where things get really exciting. Your books are like a crystal ball, giving you a clear view of your business’s past and present. This insight is priceless when it comes to making decisions about the future. Should you buy that new piece of equipment? Launch a new product line? Your bookkeeping holds the answers, and your bookkeeper knows how to interpret the data,
helping you make choices that can lead to more sales and bigger profits. It’s not just about avoiding bad decisions; it’s about confidently making great ones.
How we help
Bookkeeping doesn’t need to be a chore. Professional bookkeeping services can help your business grow.
Whether you’re just starting out or looking to take your business to the next level, we’re here to help you make sense of the numbers and find those hidden opportunities to increase your income.
Build on your hard work with bookkeeping that makes you more profitable.
Book a free call with us by visiting our website here.
11 Jan 2024
As a small business owner, it’s crucial that you manage your expenses well. In fact, Fundera found that 20% of all small businesses fail within the first year, so it’s vital that you develop good money management habits right from the very beginning. Small businesses tend to have smaller profit margins, so it’s essential to keep careful control of your costs. Here are five easy tips on how to better manage your expenses so that you can maximise your margins.
- Start Immediately
The majority of businesses incur costs before they officially launch. It’s important to keep a careful track of your expenses before you even open your doors, be they virtual or physical. Even the smallest costs can really add up over time! No business owner wants to pay more tax than strictly necessary, so set yourself in good stead by carefully recording your expenses right from day one.
- Open a Separate Business Bank Account
Opening a separate business bank account makes it infinitely easier to keep track of your spending because it avoids the risk of confusing business and personal transactions. You cannot claim personal expenses as business costs, and such a mistake on your tax return could result in a significant penalty. Furthermore, having a separate business account ensures that you won’t overlook any transactions and end up paying more tax than you should.
- Use Accounting Software
Online accounting software makes it easier to manage your spending. Many programs allow you to upload pictures of your receipts and invoices and then organise them accordingly. This will save you a lot of time and prevent you having to manage a mammoth backlog of records all at once.
Furthermore, accounting software will provide you with a clear picture of your spending and even allow you to understand which costs generate the most significant return on investment. This is actionable data that will allow you to cut costs where necessary and focus more on profit-generating activities.
- Create a Clear Budget
Creating a realistic business budget that you can actually stick to is an important step in managing your expenditure. You will then be able to monitor your performance against this budget and adjust it when necessary.
In order to create a realistic business budget, you must first calculate your income, then determine your costs and work out your profit from these figures. This will tell you how much you can afford to spend and allow you to set a cap on your expenditure. Be sure to review and update your business budget regularly; an outdated budget is of no use to anyone.
- Take the ‘Little and Often’ Approach
Let’s be honest: as a small business owner, bookkeeping is unlikely to be your favourite task. Treat it like a household chore and take the ‘little and often’ approach. Spend a little time each day or week to record your expenses and measure them against your business budget. This will give you an accurate idea of what you’re spending right now and allow you to fix any potential problems before they spiral out of control.
Summary
Conscientiousness is the key to prudent expense management as a small business owner. By being proactive about bookkeeping from the very beginning of your business, you will find it much easier to manage your spending. A clear understanding of where your money is going is crucial if you want to cut costs. Furthermore, by creating a realistic business budget, you effectively devise a roadmap for spending that will make it far easier to make smart decisions when it comes to expenses.
Book a free call with us by visiting our website here.
