One way to Increase Your Bottom Line Before Year-End
Have you ever been told that the way to a better and bigger bottom line is to look at your revenue streams? Determine what product or service you offer that is bringing in the most profit and focus on it. Or brainstorm different revenue streams that could bring in not only more clients, but would appeal to a different market base.
As the last quarter of the year is approaching, I recommend to all my clients to review their financial statements. But I recommend a different angle than just developing new revenue streams. At this time of the year, I recommend you concentrate on an area that you have more control over. Your expenses. It is the perfect time of year to review over your last 3 quarters and see what areas of spending are larger than you anticipated.
Like a majority of small businesses one of your biggest areas of spending might be advertising. This is the perfect time to examine your advertising campaigns and determine what is working and what might not be working for you. You can eliminate the low performing campaigns and still have time before year-end to reap some savings. Is your phone bill pretty high? Maybe you need to look into a plan that might be more fitting for your current usage needs. Do you have recurring payments for products or services that you aren’t using anymore? This is the perfect time to cancel unneeded fluff; savings can be found all over.
Just go down your Profit and Loss statement and review each category, looking to see the specific vendors and charges. You may be surprised at what you find. This is also a good time to verify that each transaction is coded to the proper account. If not, move it to the proper account so you can get a true statement of your expenses. This part is extremely useful with tax time right around the corner.
If you are reading this and thinking, “But I don’t have a Profit and Loss statement. How do I get one?”. You should contact me. I am more than happy to discuss with you how to go about getting and utilizing a system to track your income and expenses. This will also allow you to have proper reporting and be ready at tax time.
Copyright 2014 Christi Rains, Alpha Omega Consulting & Bookkeeping, LLC www.aobookkeeping.com