It is the part and parcel responsibility of every business owner, whether running a small/medium or an entrepreneurial firm to keep checking on the crunching profit numbers. However, most of the business owners either do not have the system in place or do not have the time to do it for them. Moreover, if looking at the business bank account at the end of every week is not making sense to you, then it is time for you to work on your business numbers and statistics by optimizing system and process.
Your business needs a proper reporting system that provides timely updates, insights and reports that shows how your business is performing over a period. Well, here we are going to discuss 3 ways to know your business numbers which in turn can give you more control over your profit line.
Detect Problems Early
Haven’t we all have heard the saying, “Prevention is better than cure”, but seldom we do implement. But, to run a business successfully, one has to have an eye to spot, detect and take action on it before it gets too late.
1) Unpaid Invoices:
Getting paid on-time, keeps the business in perfect operation. But what if, when you don’t? It is definitely going to affect the financial figures and hence, less business profit. If you have various unpaid invoices at a given time, then your priority should be to identify reasons behind it. You need to find out, which of your customers are irregular in paying and are always on the receiving end of past-due notices. There are different ways of collecting payments from such slow paying customers which you can read here.
2) Keeping Track of Profit:
You can get a hold of your current financial situation by comparing monthly, yearly financial statistics to get a clear picture to identify and work on improving net profit of the business. The key determining factors for your net profit are,
3) Take Feedback:
Take timely feedback from customers via surveys and forms. Also, you could develop a business communication channel to have regular conversations to pinpoint the areas which need improvements. Well, the customers’ opinions may vary but a general outlook on surveys will give you heads up on the few inconsistencies which you can uniformly work upon.
Know The Value of Valued Customers
You can check your clients’ payment report and data to know who tops the chart. As, these are your loyal, good-paying customers who like your products and/or services and are more likely to recommend your business in their community. Reaching out to them via goodwill note/postcard or a discount gesture in services shows the effort from your side in keeping them as valued and long-lasting trustworthy client-customer relation with them.
Watch Your Spending
Multiple payment categories such as credit/debit cards, cheques, online payment gateways, etc have made it easier to clear pending invoices. However, it is also equally easier to lose the track of spending while distracted by hundreds of daily business tasks. Even at times, you might think to look at those long list at a later time which unfortunately you never seem to find out.
With an online invoicing platform, you could easily monitor your expenses categorically and deduce the spending trend to either cut or modify accordingly.
Moon Invoice, a simple and easy online invoicing platform can streamline your entire expense management process with its ‘Expense Tracking’ feature. The feature can help you optimize, organize and can help you to take necessary action if your monthly/yearly expenses are heavily accountable.
Few of the ‘Expense Tracking’ features at a glance are:- Track Expense, Categorize Expense, Record Expense, Know Where You Spent More & Hassle-free Tax.