Conventional Guide for Financial Success 3/4 - Employee Productivity & Maintaining a Budget

by John Cox Author

Here is part three of the 4-article series, Conventional Guide for Financial Success, with questions that can have a huge impact on the success of your business.

Finance and accounting are undoubtedly the essential part of a business. Having reliable software like QuickBooks for bookkeeping gives your team unmatched support, and when hosted on the cloud, keeps you up-to-date with latest policies. Also, cloud hosting of the software enables authorized users to access QuickBooks remotely on any device with internet, which is indeed a major benefit. All your files are on the cloud, meaning no need to sit on a particular system to work. This technological advancement has highly benefited businesses as more than 50% of the companies have already opted for cloud hosting.

In our last two articles, we covered five important questions from the ten questions Conventional Guide for Financial Success. Let us continue with part three of the 4-article series.

6. Are you measuring Employee Productivity?

Gross profit is directly related to staff performance. Strategic CEOs think of employees as an asset to their business. To keep score, it is important to assess your KPIs (Key Performance Indicators) in conjunction with your people. It is suggested that you start calculating this key metric for your business. Analyzing the drivers of your business and measuring them through your KPIs will greatly help you to implement the right strategy.

7. Do you review your budget?

Evaluating the economics of your business is crucial as finance is the foundation of a company. According to a survey, only 47% of small business owners care to maintain a budget. If you are not able to review your budget on a regular basis, the half-year mark is a good time to start. It is late in the year meaning you have information about first 6 months, but its early enough to implement corrections for the rest of the year. Your financial budget is the base on which your performance can be measured.

For clarity, ask yourself these questions:

- How can income be changed for the rest of the year?

- What is going to be my target gross profit %?

- What changes have been in overhead costs?

- Is there a need to spend more on marketing/sales to achieve target profit?

Like many business owners, you might find budgeting exasperating. But, planning your annual budget and reviewing it is a crucial and necessary process.

8. Should you be rejecting Clients?

Businesses thrive because of customer relationship and client base. However, letting go of a client is never easy, especially when most time is spent on attracting new clients. But keeping a bad client can hurt your business and affect your staff.

Companies spend so much of their resources in increasing their client list and maintaining the existing ones. Efforts are put into marketing, networking, and other activities for the same. But there are cases where a client needs to be fired in order to focus on other areas of the business. Do not let your finances suffer by keeping low margin clients on board and not replace them with higher margin clients.

Above are three questions from a ten question guide through a 4-article spread. This is part three of the series. For the next part of Conventional Guide for Financial Success --- watch this space.

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Finance and accounting are undoubtedly the essential part of a business. Having reliable software like QuickBooks for bookkeeping gives your team unmatched support, and when hosted on the cloud, keeps you up-to-date with latest policies. Also, cloud hosting of the software enables authorized users to access QuickBooks remotely on any device with internet, which is indeed a major benefit. All your files are on the cloud, meaning no need to sit on a particular system to work. This technological advancement has highly benefited businesses as more than 50% of the companies have already opted for cloud hosting.

I am John Cox, a professional web content writer in SageNext InfoTech. I have panoptic experience in writing about QuickBooks Enterprise Server, Ultra Tax CS Hosting and QuickBooks Hosting.