5 Ways To Have A Competitive Accounting Department

1) You Pay Bills On Time

Paying bills on time is more than just making sure you don’t have to pay late fees. When you pay your bills on time, you develop an understanding of your cash flow. This can help you make sure you have enough for payroll, can start a new big project, or even align your accounts receivable so you are never struggling for cash. 

This is work accountants can perform for your business and analyze with each season and as you grow.

2) You Don’t Let Your Receivables Age  

Don’t leave money on the table! Forgetting to collect accounts receivable harms your business’s credibility and cash flow, and you are throwing money away! This can even upset clients if you do not notice the mistake until months later, now they may feel required to pay it all back in full. You have now disrupted their cash flow and harmed a relationship with a client.

A competitive accounting department will be on top of your accounts receivable, making sure cash is collected quickly and helping improve your cash flow.

3) Your Products / Services Are Competitively Priced 

Pricing a product or service is much more than comparing pricing schedules with your competitors. So many more factors should go into the decision that if you forget to include these, you risk being in the red with every project. 

Not only do you want to make sure you break even (at the very least), you want to make sure you are making a good profit. With that profit, you can reinvest it back into your business and continue to improve your operations. A competitive accounting department will help you do just that. 

4) Your Expenses are Monitored 

We all know the feeling of checking your bank statement, only to realize you forgot to cancel a gym membership from a year ago. A business is no different! It is common to sign up for a free trial or only need a software program for a short amount of time before they start charging you.

Your accounting department can stay on top of these expenses and make sure they are being properly canceled. This applies to all expenses you may want to double check…bank fees, fraudulent transactions, incorrect charges.

5) Promotions & Deals 

Have you ever wanted to promote a service or product by applying a discount? It can be a lot more challenging than just offering 10% off. Instead, have an accounting department that can offer you possible sales options that will keep you in the green. 

Having a competitive sales or marketing team is important, but having a competitive accounting department is crucial. Making sure you always have healthy financial statements will help you grow your business to that vision you had when you first opened your doors.