Hire An Accountant To Set Your Gresham Business On The Path To Growth
One of the most crucial things any Gresham business owner can do to aid the growth of their business is hiring an accountant. An accountant can bring both big-picture strategic thinking and detailed financial expertise to your Gresham business. Your accountant will have a unique view of your business’s challenges and is in a position to help it grow.
Here are a few ways an accountant can assist in the growth strategy of your Gresham business:
Test Growth Options With Break-Even Analysis. Your accountant can help you set up budgeting and forecasting reports. You can begin by setting up goals for your Gresham business to achieve within the next 12 months. Your accountant can generate simple charts and graphs of projected scenarios and help to interpret forecasted results. This reporting doesn’t have to be complex. It will aid you in identifying how your business has performed in previous periods and allows you to make better decisions for growth.
Among the reports that your accountant produces, you will see how fixed costs (rent, administratiion, etc.) and variable costs (inventory, shipping, manufacturing, labor, etc.) compare with sales volume at different periods. This leads to determining how seasonality, market conditions or other factors impact the bottom line. Once you have determined a target for projected earnings, your accountant can create a break-even analysis—and ultimately provide your strategic team with a better sense of the market conditions needed to grow your Gresham business.
Help You Find Key Performance Indicators In Your Business. Knowing your key performance indicators, also known as KPIs, is crucial to growing your Gresham business. You can start by looking for the KPIs that really matter to your business type and build from there. For example, if you’re in retail, you may want to look specifically at inventory turnover. Or, if you’re in construction, an important KPI may be job costing. For manufacturing, reviewing your direct costs can identify opportunities to focus on more profitable products.
Every business has key performance indicators and your accountant will likely have this knowledge and vocabulary from working with other clients. Your accountant has a well of knowledge to help you understand the KPIs important to your Gresham business. Your accountant can advise on methods to set up KPI reporting and help you to see how they perform over time so you can make the better decisions that help your business achieve growth.
Understand Cash Flow Projections. When your accountant helps you create financial reports and identify KPIs that affect your business, they are helping you to manage your cash flow. It is important to know how scenarios such as expanding product lines, increased direct costs, adding employees or changes in location can impact cash flow—so you can mitigate surprises and take a more controlled approach to growing your Gresham business.
Business & Accounting Solutions — Excellent ACCOUNTING Services FOR PORTLAND BUSINESSES. Ready to hire a professional accountant for your Portland business? Business & Accounting Solutions offers a wide range of outsourced CFO and Accountant services in Portland. We bring knowledge and capability to Portland businesses with expertise in services such as bookkeeping, cash flow, finance consulting and more. Contact us or call at (503) 710-6213. Know someone in need of CFO or Accountant services? Consider our referral program