Business Bookkeeping and accounting should be about more than filing taxes, managing payroll, and handling accounts payable and receivable. With management accounting and a Virtual CFO, your back office can do so much more! Management accounting is all about gaining valuable financial insights into the inner workings of your business by way of the back office.
How Management Accounting and Financial Insights Will Help You Run Your Business
Management accounting services from SBA CPA can help you improve your business operations and make the kinds of data-driven decisions that'll help you steer your company to a successful future. We'll help you track and make decisions to improve essential key performance indicators in your business, helping you gain a true understanding of what makes your company most profitable.
Discover Your Most Profitable Areas
With management accounting, you'll be able to determine the most profitable areas of your business, using, job costing, time tracking, and unit economics. You can determine which products, services, employees, clients, marketing channels, and departments are the most profitable. You can then focus your efforts on bolstering the parts of your business that not only generate the most revenue but also translate to the best profit margins.
Improve Low Performers
Conversely, management accounting also helps you identify which parts of your business have the worst profit margins or are possibly costing you money. With accurate, up-to-date financial information, you can determine whether these parts of your business are worth improving or should be eliminated to improve your company's overall margins. With the right key performance indicators, you'll be able to make specific changes for improvement.
Management accounting is also highly concerned with optimizing your pricing structure and strategy. If your prices aren't optimized, you could be leaving money on the table. You might not be charging enough for your products or services. It's also possible that your business could benefit from a completely different pricing structure, such as subscription-based product and service models, instead of using pure time-driven pricing or cost-based, mark-up pricing methods.
Forecast Cash Flow
Prepare for and avoid cash flow shortages by accurately predicting what will occur.
Cut Unnecessary Costs
We'll help you put technology to use that streamlines expense and time tracking for complete cost transparency. Using expense tracking, along with job costing and unit economics, you'll be able to identify and eliminate unnecessary costs. Whether direct or indirect, cutting costs or making sure they're built into your prices will protect your business from running into cash flow shortages in the long-run.
Perfect the Cycle of Hiring
In a perfect world, you could hire someone, and they'd be able to carry out their tasks and responsibilities with no trouble on the very first day. We don't, however, live in that kind of world. Hiring a new employee requires a period of onboarding, orientation, education, and training. It could be months before a new hire is completely prepared and trained to do their job. With management accounting, you'll be able to better predict your business's rate of growth, need for expansion, and staffing demands, as well. As a result, you can anticipate when you'll require another employee and time your hiring so your new staff will be up and running as soon as they're needed.
What Clear Financial Insights Will Do for Your Business
With accurate reporting and expert advice, your Virtual CFO will help you identify the true drivers of your business, so you can make the right decisions to optimize pricing, cut costs, hire employees at the right time, improve margins, drive profits, and ultimately grow your business.