Businesses can benefit from further understanding of their numbers

If you’re finding that your business has experienced slim profit margins in recent years, is struggling with cashflow, or cannot afford to draw a decent salary or dividend at the end of each year, then you should keep reading.

There is a need to focus on the most important numbers in your business. For instance, gross profit margin is often overlooked by business owners, and simple solutions such as changing your pricing model can sometimes yield better results as well as provide an increase in revenue percentage without increasing your cost base.

Similarly, identifying and eliminating inefficiencies in the business’ processes can also shave significant time off the average job cost.

Cashflow improvements can sometimes be fixed with goods receivable/debtor management procedures and systems. For instance, if you do not know your average debtor days, or your customers are taking 90 days to pay, despite your agreed terms of 30 days, then things need to be fixed.

You will be surprised what a big difference a reduction to 60 days with no increase in revenue would do to your cash position. Cash is King – without it you cannot invest more into your business (i.e. buying more stock or paying a bonus to reward staff that are critical to your business).

Every business has different areas to concentrate on depending on their circumstances. So, if you are frustrated with your profitability or cashflow, contact us today to discuss how we can help.

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Disclaimer: The information provided in this video is intended for general informational and educational purposes only. It does not constitute financial, taxation, legal, or other professional advice. You should not rely on this content as a substitute for tailored advice specific to your personal or business circumstances.

While every effort has been made to ensure the accuracy of the information presented, no guarantee is given regarding its completeness, correctness, or timeliness. The creator of this content, along with any associated individuals or entities, expressly disclaims any and all liability for loss or damage that may result from reliance on this information.

Before making any financial, investment, or business decisions, it is strongly recommended that you consult a qualified professional who understands your unique situation and goals.