Profit Audits Can Revive the Bottom Line

| January 3, 2014

profit_audits_1Don’t assume you have to expand your company to increase profits. Extra cash is probably sitting right under your nose.

A thorough profit audit can uncover those dollars in every department of your company.

Here are five ideas to get you started:

  1. If you’re interested in borrowing money, it’s important to show your banker a marketing plan. But have you considered showing a potential lender a profit plan as well?
    Think of the extra capital you can borrow by showing your lender a realistic picture of your long-term profit potential.
  2. Don’t rely solely on traditional sales goals that are based on the previous year’s performance. This encourages your sales force to coast when those benchmarks are achieved. Instead, compile some good market projections and set a higher goal.
  3. Don’t confine sales to the sales department. Train all your employees to spot leads around town. If the referrals result in extra sales, award those employees with a small piece of the sales commissions.
  4. If you ask 10 employees what your company does best, you’ll probably get a variety of answers. Conduct a few meetings and narrow it down. You’ll end up strengthening the company’s core operations and boosting the bottom line.
  5. What products or services should you eliminate? That’s a painful question for many businesses. Most likely, you and your top managers already know the answer. Get it out in the open so you can start focusing on more profitable activities.

 


Category: Management

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Email | Website | Mary Gregory is a Partner with the accounting firm of Weil, Akman, Baylin & Coleman, P.A. in Timonium, Maryland. She is a CPA with concentrations in business and taxation. She was a partner in Jones Hall Advisors until merging her firm in 2013. She is a founding member of the Christian Professional Network.