How to Improve Your Profit
The first step to improving your business profit is accessing and understanding accurate, reliable historical financial information. With good information, you’ll have the knowledge you need to make better strategic decisions.
The next steps to improving your business profit include:
- Identifying cash flow trends for an understanding of the activities contributing to your bottom line
- Understanding operational strengths and weaknesses so you can capitalize on your advantages and manage risks
- Discovering potential opportunities that can lead to better profit
Profit Improvement Through the Power of One
Small changes can make a big difference. You can greatly improve your business profit by adjusting specific metrics by as little as 1%.
Use your historical financial information to analyze the potential impact of a 1% or 1 day adjustment to your profit and cash flow. For example, decreasing your cost of sales by 1% can increase your cash flow by tens of thousands, or increasing your average days payable by 1 day could create additional cash flow and improve your bottom line.
Support for Profit Improvement
If you want to explore the potential impact of changes you’re considering or you want guidance on what adjustments to make to increase your profit, KWB Accountants & Advisors can help you make the best choices with the best information available.
Book an introductory meeting to learn more about how your business will benefit from KWB Accounting & Advisory services.