How Accounting Software Can Increase Profits
Most small business owners who use accounting software quickly master the basics. They automate processes like invoicing and payroll, track expenses and view real time financial reports to manage cash flow and make better business decisions.
But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Here are some smart ways you can use your accounting software to help boost your bottom line.
Gain insights that increase sales
If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.
Most accounting software can highlight your biggest spenders and buying trends. How would knowing who your best customers are, your biggest selling products and how much each customer spends impact your marketing decisions – not to mention help you fine tune your sales strategies?
By the same token, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount and which items to phase out altogether.
Improve customer care and boost profits
Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save by automating processes like invoicing and payroll – giving you more time to follow up with clients and seek out new prospects.
We all know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays or thank them when they’ve hit a milestone – spending more than £1,000 on your products, for example?
With enhanced customer data at your fingertips, your business will earn a reputation for personalised service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so up-selling becomes easier.
How will you use accounting software to grow your small business?
Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.
You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.
Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?
3 Tips for Working Smarter and Gaining Personal Time
You’ve probably heard the maxim that it’s better to work smarter than harder. Working smarter means allocating your time, energy and money so vital tasks get done more efficiently, freeing up your personal time.
Too many business owners think they must keep working harder—taking on more responsibilities and working longer hours—to be successful. It makes sense, because you’re responsible for your business, but that route leads to work overload and burn out. Ultimately, your business will be unsustainable if you keep pushing yourself to work harder.
Here are 3 tips to working smarter.
1. Commit to deep work
How often do you get five minutes into a project just to be distracted by your email notifications or text messages? It’s difficult to cognitively focus on a task while being so distracted. Your mind has to bounce back and forth between different activities, and it takes time to transition every time a new email comes in.
Set aside time each day where your mobile is on silent, your email notifications are off and you can’t check your social media. Use that time to focus on your most cognitively demanding tasks. Eliminating distractions frees up your brain to focus on the activity at hand, which in turn enables you to get your work done more quickly.
Deep work was developed by Cal Newport, who has written a book on the subject.
2. Find the right business management tools
There are many fantastic platforms and software-as-a-service tools to help you run your business, but not all of them are right for you. It’s easy to get tempted by the latest app that claims to make your life easier. Before you sign up for another subscription service, make sure it actually benefits you.
Don’t sign up for something because it’s marketed as time-saving, make sure it actually will save you time. Otherwise, it just becomes one more tool that you have to log into and use to justify the expense. Productivity apps aren’t productive if you’ve already got your team logged into three other apps. Get rid of platforms that are redundant or don’t meet your needs. Don’t use any platforms because you can—investigate them to make sure they solve a problem for you or make a process more efficient.
That said, when you do find a tool that makes your life easier and more efficient, buy it and use it. You can purchase software to make invoicing easier, simplify project management, and even manage your time.
3. Increase your rates
If you haven’t increased your rates in a while it’s a great time to consider doing so. Increasing your rates means you can focus on higher paying clients, earning you more money in less time. You don’t have to raise your rates a huge amount, either. Increase them enough that if you lose a few clients, your business won’t suffer financially. Then focus on finding new clients who will pay you at your higher rate.
Final thoughts
Being a successful business owner means working hard—but it doesn’t mean you have to keep working harder. Finding ways to work smarter—by increasing your rates, investigating management tools and committing to deep work—will help you in the long run.
The worst business advice to follow
When you’re a small business owner, you get used to people giving you advice. Sometimes you seek out their insights while other times they share whether you want them to or not. While the advice is almost always well-intended, it’s not always good. In fact, sometimes it’s downright awful.
Here are some tips that well-meaning people give to small business owners that definitely should not be followed.
1. Never turn down a paying customer
Money is a good thing. But that doesn’t mean you should say yes to everyone who comes through your door. Not every person who approaches you is good for your business. If your gut tells you something is off—maybe the person is very demanding or constantly questions your prices—it’s in your best interests to say no.
It’s not necessarily about the client, either. You might be very busy, and taking on another project means you’ll be giving them subpar service or using up your valuable personal time.
If possible, turn them away graciously by explaining that you’re very busy and cannot give them the attention they deserve. Consider recommending another business for them that they could turn to.
Don’t say “yes” to everyone who walks through the door just because they’re a paying customer.
2. The customer is always right
It’s often in your best interests to ensure an unhappy customer is addressed and their needs are met. But there are clients out there who will never be happy, no matter what you do. It’s okay to try to make things right with them, but you also run the risk of word getting out that you’ll bend over backwards to make customers happy. That just encourages more unhappy people to come your way. Or it encourages people to find reasons to be unhappy so they can get additional benefits from you.
If it’s a normal part of routine that customers are constantly complaining and getting some sort of reward, you need to examine your business. If the customers are truly right, then it’s time for some changes. If they aren’t right, stop treating them like they are.
3. Do what you love
In an ideal world, we’d all have jobs we love and make endless money with no added stress, all without giving up any of our personal time. That’s not how the world works. Just because you love something doesn’t mean there is a market out there for it.
It’s more important that you find something you are okay with doing—don’t take on something you hate—that fills a need. And it has to be something enough people would be willing to pay for.
That’s how you make money in business.
Final thoughts
Everyone has advice about running a small business, even if they have never run one of their own. Some of the advice is helpful but much of it is harmful. Listening to that advice can lead a small business owner down the wrong path.
When someone offers you advice on your small business, ask what credibility they have to share their insights. Have they owned their own business? Do they have knowledge of the industry you work in? Have they learned lessons you could learn from? Was their business similar to yours?
Remember, just because someone is offering advice doesn’t necessarily mean their advice is relevant to you. And just because they offer the advice—or just because the advice is a common saying—doesn’t mean you have to follow it.
Got a question about your business? Please don’t hesitate to get in touch.
Managing work-life balance as a small business owner
We understand that, as a small business owner, it can be incredibly difficult to maintain a healthy work-life balance. The obligations and responsibilities of running your own business often take priority over any personal pursuits, no matter how important they may be for your overall well being. But, with the right strategies and mindset in place, it is possible to strike an effective balance between working hard on your business and making time for yourself.
Set boundaries
As much as we might love our jobs, it’s important to remember that our mental and physical health always come first. One of the best ways we can make sure we’re taking care of ourselves is by setting boundaries for our work schedule. For example, taking regular breaks throughout the day can help us avoid burnout and increase productivity when we return to our tasks. Or, if we know that certain tasks require more energy and focus, we can set aside specific days to tackle them. By sticking to a schedule that puts our wellbeing first, we can ensure that we remain motivated and engaged in our work for the long haul.
Do what works for you
Ever feel like you have a million things to do and not enough time in the day to get them done? It can be overwhelming to try and keep track of everything without some kind of system in place. That’s why it’s important to identify what works best for you and create a system that keeps you on track and productive. Maybe you’re a fan of to-do lists or maybe you prefer to use a digital calendar. Perhaps you find that breaking tasks down into smaller, manageable steps helps you stay focused. Whatever it is, take the time to figure it out and stick with it. Your future self will thank you for it!
Sort out what’s important and what’s urgent
We often find ourselves juggling multiple tasks and trying to complete them all at once. This approach can often lead to suboptimal results or burnout. A better approach is to sort our tasks based on their importance and urgency, focusing on the most important or urgent tasks first. This way, we can ensure that we are making progress in the right direction and achieving our goals. It may require some time and effort to identify the most important and urgent tasks, but it will pay off in the long run with increased productivity and reduced stress levels. So next time you feel overwhelmed with a list of tasks, take a step back.
Learn to delegate
As much as we all might like to think of ourselves as superheroes who can handle anything and everything, the truth is that we’re all human. There are times when even the most capable among us need a little assistance, and that’s nothing to be ashamed of. In fact, knowing when to delegate tasks can be one of the most important skills you can develop as a leader or even just as a responsible adult. Knowing when to ask for help – whether it’s from family members, friends, or co-workers – can save you time, reduce stress, and improve the quality of the end result. So if you find yourself feeling overwhelmed by a project or task, don’t hesitate to reach out for help. It might just make all the difference in the world.
Rest
It’s easy to forget the importance of rest and self-care. But the truth is, getting enough sleep and taking time to practice activities like yoga or meditation can be crucial to our overall health and well-being. Not only can a good night’s sleep help boost our mood and energy levels, but it’s also been linked to a reduced risk of developing chronic health conditions. Similarly, self-care activities like yoga or meditation can help us feel more relaxed, reducing stress and anxiety in the process. So if you’ve been neglecting your sleep or self-care routine, now is the perfect time to start making them a priority. Your body (and mind) will thank you for it!
Make time for family and friends
It’s easy to get caught up in work and forget to set aside time for the people we care about. Not only does it help us avoid burnout, but it also strengthens our relationships with those we love. Whether it’s a weekly family dinner or a monthly game night with friends, committing to these moments of connection can have a profound impact on our mental health and overall well-being. So, next time you’re feeling overwhelmed by work or life in general, remember the people who matter most. They’ll be there to lift you up when you need it most.
Finally…
Efficiency is about working smarter, not harder. With a few tweaks to your day-to-day life, you can boost your productivity and reach more of your goals.
Take the steps necessary to establish successful systems for yourself and reap the benefits! Whether that means setting boundaries, delegating tasks, or even taking time off to spend with family and friends – make sure to design a process that works best for you.
It’s important to remember that balancing work and life should be a priority – so don’t forget to take care of yourself as you continue to strive for success!
Three Ways an Accountant Can Save You Money
Many small business owners think they’re saving money by handling their financials themselves. While it’s a real asset to learn bookkeeping basics, cash flow management and your tax obligations, hiring an accountant to oversee your finances has many benefits. Leaving your books to a pro will free up time so you can focus on serving your clients and implementing plans for growth. Here are a few ways an accounting professional can help you save money that you can reinvest back in your business.
Finding money
There’s no one more suited to discovering “found” money than an accounting professional. Hire an accountant to sort your books and systemise your bookkeeping; better record keeping is the easiest way to allow you to quickly see – on a monthly, weekly or daily basis – where your money is going so you can cut costs. Keeping your accounts up to date will also help you understand which of your business investments yield the greatest returns so you can be more strategic about spending. An accountant can spot trends that you can take advantage of to earn greater profits – and even find savings with suppliers, staff and operating expenses. Hiring someone to manage your accounts will also reduce the costly errors that are commonplace when business owners try to manually track their expenses.
Avoid tax penalties
Your accountant may be your trusted advisor when it comes to staying up to date with the latest regulations for small business taxes. They can also provide you with expert advice on how to maximise your benefits and minimise your taxes each year. Don’t underestimate the cost savings of hiring someone to complete your tax forms correctly and submit them on time. Penalties for small businesses who neglect to file their taxes on time – or at all – can quickly add up; the longer you wait to file, the more interest you’ll be charged and the likelihood you’ll incur additional penalties. A business that is already struggling may not be able to pay a tax fine and find themselves closing their doors. If your small business is ever audited, having an accountant on board will let you rest easy knowing you won’t be hit with a penalty for errors or omissions.
Business advisory services
Your accountant possesses business knowledge that can help you make more informed decisions. Rely on your accountant for advice when you draft or revise your business plan; those key insights on assessing profitability will help you move your business in the right direction – and avoid wasting time and money on strategies with a lesser chance of success. Look to your accountant to help you determine your most valuable clients, how much money you need to invest in a growth plan and which marketing strategies yield the best ROI. Having someone you can rely on to help set targets and monitor your progress is an invaluable asset that can help you not only save money, but earn higher profits.
The bottom line? Your accountant can do much more for you than simple bookkeeping or ensuring you’re on the right side of HMRC. Hire a small business accountant and you’ll be doing a lot to help increase your chances for long term growth and success.
Why good financial advice is a great investment for your retirement
Retirement is a significant milestone that brings with it the need for careful planning and financial security. A well-planned retirement ensures that you can maintain your desired lifestyle without worrying about running out of money. One of the key components of successful retirement planning is seeking good financial advice. Obtaining professional financial guidance can contribute to a secure and comfortable retirement.
The Benefits of Good Financial Advice
Tailored Retirement Planning
Every individual has unique needs and goals when it comes to retirement. A financial advisor can assess your financial situation, understand your objectives, and design a plan specifically to meet your requirements to ensure that your retirement strategy is both effective and achievable.
Streamlining Savings and Investments
A financial advisor can help you diversify your investment portfolio and allocate assets strategically to balance risk and reward. By doing so, they can improve the growth of your savings and investments while reducing potential losses to a minimum, setting you up for a more financially secure retirement.
Tax-efficient Strategies
Understanding the tax implications of various investment options can be complex. A financial advisor can guide you through the process and help you structure your investments in a tax-efficient manner. This not only improves your returns but also reduces your tax burden during retirement.
Managing Inflation and Market Volatility
Inflation and market volatility can have a significant impact on the value of your retirement savings. A financial advisor can help you navigate these challenges by protecting your investments and adapting to changing market conditions, ensuring that your retirement funds remain secure and continue to grow.
Estate Planning and Wealth Transfer
Good financial advice extends beyond retirement planning to include estate planning and wealth transfer strategies. It’s important to seek advice to ensure the financial security of your loved ones.
When selecting a financial advisor, consider their professional qualifications, as well as their track record of success in retirement planning. This will help you gauge their expertise and ensure that they are well-equipped to address your specific needs.
Understanding how advisors are compensated is crucial when comparing different providers. Make sure you are aware of their fee structure and any potential conflicts of interest. Transparency is key to building a trusting relationship with your financial advisor.
A good financial advisor should provide regular updates on your portfolio performance and be available for consultations and meetings when needed. Effective communication ensures that you remain informed about your investments and can make well-informed decisions.
When to Seek Financial Advice
While it’s never too early or too late to seek financial advice, certain life events and milestones may prompt you to consult a professional. These include major changes in your financial circumstances, such as receiving an inheritance, experiencing a job loss, or approaching retirement age. Periodic financial check-ups can also help ensure that your retirement plan remains on track and adapts to any changes in your life.
Investing in good financial advice can have long-term benefits for your retirement planning. With the right financial advisor by your side, you can look forward to a comfortable and fulfilling retirement.