From the outset, we take the time to understand the different types of costs in your business to then recommend specific cost management techniques.
One technique we use is benchmarking key financial indicators in order to compare your costs (such as rent, raw materials, electricity, water, etc.) to similar businesses in your industry to ascertain if you are paying too much.
Benchmarking is also useful to compare other financial data such as stock on hand in similar sized retail operations.
On the sales side, our accountants are skilled at identifying and measuring the key profit drivers of the business. It is certainly easier said than done and is an activity often overlooked by small to medium businesses, either because the owners are busy working in the business, or the task is too daunting. We have the expertise to sift through financial data and sort through fixed and variable costs in order to accurately identify those products or services with the highest gross profit margin.
Once the most profitable items have been identified it is then possible for the client to apply their expertise and direct their efforts towards the more profitable items in order to achieve higher sales.