In Pursuit of Profit
Read our expert article below or sign up to get articles sent to your inbox.
(800) 931-6557
(800) 931-6557
We are in a time of change because that’s what the business world does – change. Whether innovation happens slowly or quickly and whether advancements are small or massive in scope, the world doesn’t stand still.
Amid the ever sweeping winds of change business owners must return to the core of management – asking the right questions to keep their businesses moving along at the same pace. 1/11/2023 How to Adjust Prices for Inflation
In an article on how consumers are responding to inflation Andy Pandharikar explains, For many years, the inflation rate in the United States has been relatively low, hovering around 2%. However, in recent months, that rate has increased dramatically, nearing 7%. However, if we measure according to the Bureau of Labor Statistics’ methodology from 1980 that figure exceeds 13%. Inflation in specific categories like ground beef has been even higher, nearing 20%. As prices rise more quickly than wages, many consumers are finding it difficult to afford basic needs. Of course, the risk for businesses is significant. Improperly managed pricing can either cost the company its customers or its profits, either of which ends in failure. Prices need to hit a sweet spot where they can generate profitable revenue and are because enough people are buying.
11/11/2022 What is a Good Cash Conversion Cycle?
So, what is a good cash conversion cycle?
While outsourcing overseas used to just be a cost-saving measure, many accounting firms are now facing labor shortages that are forcing them to take this step out of necessity, not of their own choosing. The Washington Post declared that “The remote revolution could lead to offshoring Armageddon” and though that is likely an exaggeration, it demonstrates how desperate many employers are these days to find personnel to do the work that needs to get done.
CPA firms, large employers, and companies with complicated ongoing financial needs are in a pinch. They need skilled employees to do the work that keeps their businesses running but with a dearth of qualified candidates available, their options are limited. However, offshoring is not the only solution! It is often a far better option to upskill your existing employees to assist with this work than to send it overseas. 1/18/2022 How to Handle Excess Inventory While many companies have faced materials and components shortages leading to stock outs since the start of the pandemic, many other companies have been sitting on excess inventory due to transportation challenges, shifting consumer patterns, and tightening sales distribution channels.
Excess inventory occurs when a business holds more stock than is needed to meet their forecasted demand. It can be the result of flawed forecasting, purchasing errors, improper inventory management, or business disruptions. The latter is what many organizations have been dealing with since early-2020. But, regardless of the cause, too much inventory can cause both financial and operational obstacles. If your company is carrying an abundance of inventory, it is important to act quickly to get it off your books and out of your warehouses. Use this guide to understand why excess inventory can be a business killer, and what to do about it!  What kind of accounting controls do you have in place right now?
If you are not sure, or are too embarrassed to answer, chances are you have some work to do. Internal controls protect your business from not only fraud but also the kinds of financial errors and reporting mistakes that can negatively affect cash flow management, dissuade investors, and hinder long-term business growth.  When your controller leaves, the logical next step is to find someone to fill the vacant position. Right?
Maybe not. Simply hiring another controller may not actually be the best decision for your business. We work with companies everyday who are looking for accounting and finance leadership roles and it is not uncommon to have clients tell us they need a controller and then listen to them define the role only to discover that what they are looking for is a different position entirely. Now, some organizations we work with are, in fact, in need of a controller. However, others have needs that better align with more senior financial leadership like that of a CFO, while others have requirements that fit better with a mid-level management accounting position. Instead of jumping right into hiring a controller, take the time to understand what kind of role will be the best fit for your company.  Written in conjunction with our partners at CFO Selections
A cash flow shortage is the number one reason why small businesses fail, but even mid-sized and large companies need smart cash flow management to survive and thrive. Insufficient cash forces companies to make difficult decisions about who is going to get paid and when. Unfortunately, this can lead to vendors and suppliers being paid late, being overdue on rent, even employees waiting on paychecks. It is not an exaggeration to say that cash is the lifeblood of any business. Not having enough money to pay for expenses can erode business credibility, which leads to:
Ultimately, a company’s potential will be stifled if there is not enough capital to invest in the assets that facilitate growth, and its very existence can be threatened as well. So, are you ready to manage cash flow for the coming year?  Are you paying for compliance accounting or advisory accounting? Do you know?
Compliance accounting is straightforward – it deals with day-to-day accounting, reporting, and tax preparation. But what about advisory accounting? The Intuit Tax Council defines accounting advisory services as, “Taking client challenges and applying strategies to create opportunities in service to their growth.” Accounting advisory interweaves technology, relationships, communication, and strategy to provide companies the fuel needed for profitable growth.  Don't wait around for "the right time" to improve your accounting functions! Now is the time to stop putting off the planning and cleanup work that always seems to get pushed to the backburner. Commit yourself to embracing a culture of continuous improvement – looking for places where you can overhaul whatever is broken and streamline areas that are not working optimally.
So, how do you identify where your accounting department needs to improve? Ask your accounting team and any staff that deals directly with them where their pain points are and what they would prioritize fixing. By including both the team’s feedback and the rest of the organization’s perspective, you will get more balanced input on what kinds of changes should be prioritized. Focus on operations, processes, and policies with the potential to have a big impact on either efficiency or accuracy. Possible areas to focus on include: |
SUBSCRIBE:DOWNLOAD:
DOWNLOAD:
Categories:
All
Archives:
March 2023
|
RSS Feed
2/27/2023