Mississauga Accountant Helps Increase Businesses Bottom Line, Profits
As a business owner, your main focus is on building your business
, growing sales, and increasing profits. A Mississauga Accountant can help you achieve these objectives and more. Mississauga accountants do this by providing business owners with valuable advice and important financial tools, which are discussed below.Financial Reports prepared by Mississauga Accountants
Mississauga Accountants (or your local accountant) should provide you with monthly or quarterly financial statements, including:
Profit & Loss Statement
Balance Sheet
Sales report for the period
By reviewing the profit and loss statement and sales report with your Mississauga Accountant regularly, you will be able to identify whether profits are improving each period, or if there are certain weaknesses, such as declining sales or rising costs. Once the weaknesses are identified, your Mississauga Accountant can work with you to develop a plan on how best to correct any weaknesses identified.
Mississauga Accountants help analyze gross margins
Business owners sometimes get very excited to see that their sales are increasing. However, that excitement may be premature without first analyzing the companys gross margins. A gross margin is the profit earned on selling a product or service and is calculated as:
Selling Price Cost of Product = Gross Margin
Therefore, even if sales are increasing, but gross margins are declining, then this is a bad sign for the businesses profitability. Two major factors that affect gross margins are price and the cost of the product or service. Therefore, its very important that you review your companys gross margins regularly with your Mississauga Accountant to see how they can be improved.
Preparing Budgets with your Mississauga Accountant
A budget is a financial report that provides a detailed breakdown expected sales and expenses over a certain period of time in the future. You should prepare a quarterly budget with your Mississauga Accountant. The benefits of preparing a quarterly budget are:
You know what your expected sales and expenses are for the next 3 months and can plan accordingly for any additional financial resources, human resources and tangible assets that are required to meet your budgets requirements.
Your budget serves as a goal that you strive toward achieving. If you fall short of your budget, you need to examine what went wrong and how those errors can be corrected in the future. You should engage your Mississauga Accountant in this process.
You have a financial roadmap for the future
Regular meetings with Mississauga Accountant
As a growing business, many challenges are bound to come up that have financial and strategic implications. Thats why its important to meet with your Mississauga Accountant to discuss those challenges and how best to tackle them. Given that your Mississauga Accountant has many clients in various industries, he can provide you with practical advice based on his experiences on how to best tackle your business challenges.
At a minimum, your Mississauga Accountant can service as a sounding board for you, helping you facilitate discussion around your companys challenges.
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