480-354-1040 | hello@cdtax.com

CD Tax & Financial
Schedule your free consultation today
  • Home
  • Services
    • Accounting Services
    • Tax Preparation and Planning
    • Tax Resolution
      • Help with Your IRS Audit
      • Filing Prior Years Return
      • Owing the IRS Money
      • Behind on Payroll Taxes
      • When Your Spouse Owes the IRS
    • PPP Loan Forgiveness Assistance
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Testimonials
  • Blog
    • Blog
    • Newsletter
    • Weekly Tax Tip
  • About us
  • Contact
  • Home
  • Services
    • Accounting Services
    • Tax Preparation and Planning
    • Tax Resolution
      • Help with Your IRS Audit
      • Filing Prior Years Return
      • Owing the IRS Money
      • Behind on Payroll Taxes
      • When Your Spouse Owes the IRS
    • PPP Loan Forgiveness Assistance
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Mobile Accounting
  • Testimonials
  • Blog
    • Blog
    • Newsletter
    • Weekly Tax Tip
  • About us
  • Contact

Ideas to Improve Your Profit

January 8, 2021 In Accounting, Business Growth, Business Tips, Profitability Tips
ShareTweetPinterestLinkedin

Profit Tips

Consider the following ideas for saving time and money and making your business more profitable.

1. Develop tight controls over billing and collections. To speed up cash flow, reduce the time between shipping your product and sending an invoice. Consider semimonthly instead of monthly billing, and send second notices more quickly.


2. Collect past-due receivables. Almost every business has past-due receivables. Phone the people who owe you the most money, and try to resolve the problem on the spot. If you can’t collect the total immediately, try to negotiate a payment schedule, or schedule a follow-up call.

3. Watch your payables. Don’t be one of the many businesses that overpay vendors due to sloppy accounts payable procedures. Go over these rules with your accounts payable clerk:

  • Don’t pay vendors twice (or more) for the same invoice.
  • Don’t pay for goods that you return to the vendor; check the invoice to be sure an adjustment has been made.
  • Keep track of credit memo allowances you receive and subtract them from the next invoice.
  • Be sure to take discounts for early payments when they apply.
  • Don’t pay for charges that are incorrectly included on the invoice, such as shipping charges the vendor agreed to pay.

4. Keep payroll costs under control. Payroll costs are a major item in most businesses. Perhaps a more efficient plant layout or work schedule would result in reduced labor needs. Consider the use of temporary employees and subcontractors if your business is subject to seasonal variations.

Review employee classifications for workers’ compensation insurance. Improperly classified workers can be costing you significant premiums. Review group insurance programs. Solicit bids for the programs every three years. Consider higher deductibles as a means to lower premiums.


5. Watch those numbers. Use your financial statements to give you important management information. Compare inventory turnover (cost of sales divided by average inventory) year by year. If turnover drops, consider it a warning sign and investigate further.

Compare your gross profit margin (sales less cost of products sold) from year to year. A decreasing profit margin may be a danger sign; it should be checked as soon as it is spotted.

If you sell a number of different products, determine their individual gross profit margins and their mix. Give particular attention to low-margin products to see if it’s still worthwhile to carry them.

6. Use prior financial statements as a guide to prepare budgets and long-range projections. Actual results should be compared to these projections to highlight areas needing attention before major problems develop.


7. Use your advisors wisely. Keep your accountant, banker, insurance agent, and lawyer informed about your business. These professionals consult regularly with many other businesses and can help you avoid pitfalls in making business decisions.

There are other business management strategies in addition to those mentioned here. As your business needs grow and change, our staff can provide input and planning assistance to make sure your accounting and financial systems keep pace with your business needs. Contact our office to learn more.


Please note we use affiliate links to products for which we may receive compensation. We use these products and recommend them because they are companies that we have found amazing and trustworthy.

As a member of the QuickBooks ProAdvisor Program, we get access to exclusive discounts to share with our clients.
Enjoy 20% off checks, forms, and supplies from Intuit with this link https://intuitmarket.com/PAPClient20

Stay Up To Date on Taxes that Affect You!! Subscribe to our General Taxpayer Weekly Tax Tip that includes bite-size and informative tips on tax and financial changes, Monthly Client Update Newsletter, and updates on our events and seminars. Follow CD Tax on Facebook!  

Please note we use affiliate links to products for which we may receive compensation. We use these products and recommend them because they are companies that we have found amazing and trustworthy.

accounting employer Payroll profit sales small business

Monthly Archives

Categories

  • Accounting (41)
  • Accounting Software (12)
  • Amended Tax Return (4)
  • Blog (2)
  • Bookkeeping (2)
  • Bookkeeping Tips (11)
  • Business Development (25)
  • Business Growth (23)
  • Business Tips (83)
  • College (3)
  • Cool Tech Tools (13)
  • Cost-Saving Tips (14)
  • Cost-Savings Tips (5)
  • COVID-19 (46)
  • Customer Service Tips (6)
  • Decision-Making Tips (13)
  • Deductions (7)
  • Divorce (2)
  • Expense Reduction Tips (4)
  • Finance Management (9)
  • For Your Business (62)
  • Identity Theft (13)
  • Individual Tax (93)
  • IRS (39)
  • IRS Audit & Representation (4)
  • Legacy Planning (31)
  • Management Tips (9)
  • Marketing Tips (1)
  • Money Management (16)
  • News (19)
  • Payroll Tips (17)
  • Personal Development (5)
  • Profitability Tips (11)
  • QuickBooks Help (1)
  • QuickBooks Software (1)
  • QuickBooks Training (1)
  • Tax (51)
  • Tax Dates (21)
  • Tax Planning (21)
  • Tax Rates (4)
  • Tax Records (8)
  • Tax Resolution (2)
  • Time Management Tips (4)
  • Uncategorized (5)

Sitemap

  • Home
  • Services
  • Products
  • Industries
  • Resources
  • Testimonials
  • Blog
  • About Us
  • Contact

Contact Us

Tax Services, Accounting Services and Services for QuickBooks®

CD Tax & Financial
Tax Girl Enterprises LLC

8257 E. Guadalupe Rd Suite 115
Mesa, AZ 85212 United States

480-354-1040 | hello@cdtax.com


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.

Client Portal Login CD Tax & Financial Mesa AZ

Schedule your free consultation today CD Tax & Financial Mesa AZ

©2020 CD Tax & Financial | Tax Girl Enterprises LLC
Site Design by Accelerator Websites