See an Accounting Consultant

One of dozens of strategies listed and linked to here:
How to Make More Money From Your Business


You can use your own tax professional as an accounting consultant if he is good at what he does. Otherwise you might want to consider paying for this kind of help as a way to find additional profits in your business. How can a consultant help with this merely by looking at your books? Lets consider a few examples.

Given that you're reading the pages in this section on how to make more money from your business, you are likely to be more educated than most small business owners. You are probably aware of the normal ratios and other numbers that are normal in your industry. But it is amazing how many people jump into business without a clue about these things. I know of a local restaurant that at one point had 47% labor costs. There is something wrong with that, as any accountant with experience could have pointed out just from looking at the books of this company. Many restaurants get by with labor adding up to only 25% of sales, so this business is probably over-staffing or misallocating their employees. They might be able to double their profits just by doing a better job scheduling.

That is an example of what a good accounting consultant can tell you. He or she will recognize immediately if your numbers are within the normal ranges for your industry. If they are not, he can look deeper to see what you can do to cut costs. Any savings you get on your expenses tend to go straight to the bottom line.

She might also suggest ways to boost your profits by boosting sales. For example, if she sees that you are spending less than normal on marketing, this could indicate that you need to invest in getting more customers. You might not be aware of the option you have for doing this, whether that means online pay-per-click advertising, yellow pages, or piggy-back ads (putting your flyers in mailings with those of other companies. A good accountant will be aware of these, because she sees the expenditures made by others in your industry.

When you hire an accounting consultant, be clear about what you are looking for and be sure that he can deliver. You don't need advice about deductions you missed (although that would be nice too). You need specific suggestions on how to make more money based on an analysis of what you are currently doing compared to what other successful businesses in the industry are doing.

If you feel the cost is too much, you can at least ask your own accountant or tax preparer for suggestions. Even if he has not done this kind of analysis before, he may notice some abnormal numbers in your books based on what he has seen in others. At that point you can investigate to see if there is a problem to be solved, or a way to do things differently and more profitably.

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Every Way to Make Money | See an Accounting Consultant