Five Ways to Increase Business Profits

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					?Too often business owners make common mistakes that cost time, money,
effectiveness, and profitability. Identifying the five most common management
mistakes can help you increase your company's productivity.

1. FOCUS ON YOUR CORE BUSINESS

 The single best way to better manage any firm is to focus on the business at hand
and on your customers. You are skilled at what you do; that is why you started your
business. Typically, as the company grows and the client base increases, owners and
managers try to wear too many hats. They become accountant. Network administrator.
Office manager. Think back to that first job, the one that inspired you to go out on
your own. All your focus was on the client, on your specialized product or service.
That inspiration and success is why your business grew. To maximize your potential
now, every customer should be treated that way. You cannot do this unless you focus
solely on your specialty and leave the accounting, network administration, and office
work to other trained professionals.

2. DELEGATE

  Delegating non essential jobs will allow you to better manage your time, make you
more effective, and increase your profits. You must delegate some responsibilities so
that your time can be dedicated to your own area of expertise. The best way to do this
is to work with people who are extremely competent at what they do, just as you are
at your profession. In many cases it is best to go outside your company to manage
details such as payroll, accounting, and bookkeeping. Outsourcing this will save you
money.

3. DOWNSIZE AND CUT COSTS

  Cutting payroll saves both time and money and also increases your profitability.
Frequently, business owners hire full-time office and accounting staff when they
really need someone only 10 or 15 hours a week. Why not just outsource this work?
You pay for only what you need, when you need it. Downsizing in this way saves
money on costly overhead, while it also makes you more effective and your business
more profitable. You save valuable time because you do not need to find busy work,
train, or supervise staff. Think of how much more time you can devote to your clients!

4. REDUCE TAXES

 No one enjoys paying taxes. Nevertheless, many businesses pay too much in sales
and income tax because they try to save money by doing something themselves rather
than relying on a trained professional. Cutting payroll will cut your tax liability, and
turning to a professional to handle your taxes will make your company stronger and
more profitable.
5. AVOID COSTLY ACCOUNTING ERRORS

 This is really common sense. Whatever your profession, you are not an accountant
by trade. Why waste your time - and money - doing something that is beyond your
expertise? Even if you are good with numbers, accounting rules and procedures
change constantly. There is no way you can manage your company to the best of your
capabilities and keep up with all the new accounting trends, just as your accountant is
not knowledgeable about the latest trends in your chosen field. One of the best ways
to improve your profitability is to find a good accounting firm that specializes in your
industry. After all, you should have an accountant who knows what you do,
understands the particular challenges of your chosen field, and speaks the language
and vocabulary specific to your business. Doing so will save you the most money and
cut costly accounting errors.

 Identifying and fixing these five problems can help owners of any firm run their
company more effectively and efficiently. Finding a competent outsourced accounting
solutions provider can dramatically improve overall efficiency and profitability.

Pereira Enterprises, Inc. offers affordable, reliable accounting, consulting, and
business management services Keeping YOU in the GREEN! (240) 744-44611

				
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