2020: The year for smarter business decisions

CraigBusiness Audit, Business Process, Business Technology, Cloud Accounting, General

We know every dollar (and minute) counts in business and regardless of where you are in your business journey, understanding the numbers is key to making smarter business decisions.

Do your figures add up?
It may not be the end of financial year; however, year-end is a great time to assess your figures.

542 Tip: A well-run business has well-managed accounts. With the right business advisor and tools, you’ll be aware of the financial well-being of your business at any time.

Does your expenditure over the past calendar year give any cause for concern?
It may sound simple, but knowing what money is coming in (credits) and money going out (debits). For many businesses the cost of wages is one of your highest costs, so make sure you examine employment costs and the output of your employees carefully.

542 Tip: You don’t have to do it alone — make use of smart accounting software to help you keep tabs on the money flowing into and out of your business.

How does your business performance compare to competitors?
Know how your business stacks up with the competition. Although you can benchmark almost any metric or area of your company, begin with the four that matter most: your income, your expenses, your customers, and your team.

542 Tip: The ATO offers a business performance check tool. It will calculate and compare the data you entered using the benchmarks to quickly show how your business compares to your competitors. We also offer a more comprehensive benchmarking analysis comparing numerous KPI’s and Ratios of hundreds of business in the same category.

What are your goals for 2020?
Make a shortlist of your main business goals for the year and put them somewhere you can see them. These might include sales targets, revenue figures, opening new stores, taking on more staff, or improving business relationships with existing clients.

542 Tip: Success means different things to different businesses. Set goals you know you can achieve. Work towards these during the year and check them each month to remind yourself where you’re going.

 

Understand your business and use the data to make effective, strategic decisions this festive season.

If you would like to speak with 542 Partners about your business goals, talk to us to arrange a consultation.

 

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