As a business owner or CFO, you want to increase revenue, as well as decrease overhead. It’s a tough process that demands time and money to do so. In fact, financial statements and tax returns show where your business has been, but not where it may be going. What most business owners need is a combination of big-picture strategy and detailed financial knowledge. Straightforward advice with easily digestible financial reports are what make great decisions.
At Limitless Investment & Capital, we offer you the best in business accounting services that fit the uniqueness of your business growth trajectory. Our experts work to help you make sound decisions based on accurate, effective financial reports. In this article, we will share how else we are able to help you grow your business in the future.
Five Ways Accounting Firms Help Grow Businesses
#1. Create Break-Even Analysis To Test Growth
You will work with an accountant to setup up your annual business goals, split into each quarter. We will use your prior years of business to create simple assumption reports to determine if your goals, based on your prior years of growth, are achievable at your current pace.
What’s more, we will include the following in the reports:
- Fixed costs
- Variable costs
- Sales volume
With all of this information, you will then be able to determine if the market, seasonality, or other factors contributed to past growth and/or will influence future growth.
#2. Find Key Performance Indicators in Your Business
One of the greatest assets you can have as a business owner is knowing your key performance indicators (KPIs). What drives your business and grows it? What’s holding you back? For example, a construction company would compare total job cost to total job revenue, as well as the individual parts that make up that project, to determine the KPIs for that given type of project. Other KPIs like billable hours, production cost, or inventory turnover are all examples that can be identified and analyzed.
#3. Manage Cash Flow
Cash flow is the lifeblood of your business. Without it, you are a sinking ship in the middle of the ocean. In fact, small- to medium-sized companies fail or succeed based on their operating cash flow. Did you know that 60 percent of small business owners say their failed business was due to lack of cash flow? It’s not enough to hope that your business grows. You need to work with accounting experts to determine what you need to do more of and less of to increase revenue.
#4. Benchmark Your Business Against Industry Standards
You can work with your accounting firm to put your business up against industry standards. This gives you an idea of how your business trajectory compares to others that have come before you. This is a great way to get a high-level view of your business and the market.
#5. Integrate Your Accountant with Your Advisory Board
If your business accountant is helping you make decisions based on financials, integrate that person into your advisory board. Not only will you gain an extra knowledgeable voice, but your other advisors will be able to work with your accountant to better serve you and your business.
Limitless Investment & Capital: Your Expert Accounting Firm
As your business grows, you will need business accounting services. In fact, schedule your initial consultation with Limitless Investment & Capital today to get a jump start on revenue growth. Let us get the job done right for you.