business decisions

5 Ways Bookkeepers Support Business Decisions

As your business grows, you need to surround yourself with a team of people that have the skills and drive to help you take your vision to the next level. And when it comes to bookkeepers, you want a financial quarterback on your side, not a data-entry monkey.

Unfortunately, both can be called bookkeepers, but the quarterback is the bookkeeper that asks how they can make your business better. They’ll pair their knowledge with a clear assessment of your business data to help you make the business decisions that are in the best interests of your company.

For example, a bookkeeper can improve how you approach decisions about:

Managing Cash Flow

Have difficulty keeping track of your cash? Great bookkeepers can give you a cash flow report that shows where your cash has been spent. They can also develop cash flow projections that will help you to manage your current and future cash needs.

Selecting Projects

If you take on a lot of project work, a bookkeeper can assist you with project costing and give you a breakdown of which jobs made you money and which jobs didn’t. This can help inform the decisions you make about what jobs are worth taking on in the future.

Improving Gross Margins

Are you looking to improve your company’s gross margin? A talented bookkeeper can help you analyze direct and indirect costs and determine where your greatest opportunities for improvement lie, enabling you to make informed decisions about production, materials, and pricing.

Offering Employee Incentives

To get the most out of your employees, you have to encourage their efforts. Whether you’re looking to launch an incentives program or expand an existing one, your bookkeeper can help you analyze, plan, and execute a bonus scheme that will enhance employee performance.

Buying or Leasing

Small- and medium-sized business owners need to consider their investments carefully, particularly when it comes to big ticket items like office space and equipment. Should you lease, or buy? Your bookkeeper can give you the data you need to make a wise decision.

Your bookkeeper can also help you make decisions about expense management, tax filings, and a host of other issues. These insights can impact the growth and efficiency of your business and also ensure that your business stays in line with relevant business regulations and CRA requirements.

Learn more about how Legacy Advantage can help you make the right business decisions. Contact us today.

 

About Bob Wang

Bob is the owner and founder of Legacy Advantage. He holds a CPA and has experience at a private client services brand, Big 4. Bob's passionate about empowering organizations through quality bookkeeping services.
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Trackbacks & Pingbacks

  1. […] you have a bookkeeper that supports you with financial intelligence, having a corporation can really help. A sole proprietor doesn’t have a balance sheet because […]

  2. […] Well as painful as it may seem, when starting off, it’s a great idea to build your bookkeeping system yourself. You’ll better understand the ebbs and flows of your business, along with the rhythms of your costs and expenses. The knowledge and appreciation you’ll gain about your business or organization will be invaluable as you make key decisions. […]

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