Under the Universal Business Model (UBM), there are three business functions that must work well together in order to increase profit. Accounting is one of these three functions. If you work in any department that deals with accounting, bookkeeping or taxes for any business organization, you have access to much of their financial data, and as a result, you have the capacity to become a priceless resource: the Profit Center Expert.
Accounting, marketing, and production are the three functions that must work well together to ensure success. Any business function that acts independently of the other two can doom a company. For example, if production has not told marketing what it currently produces, marketing dollars are wasted. Likewise, if accounting does not tell production what products are profitable, the company losses money.
As a accounting professional, you should not only encourage communication among these functions (when possible), but you should lead by example in freely sharing your information with others. This begins with the business owner — freely communicate and explain your findings. And your focus should not only be to prepare taxes, but to help your clients save money, and possibly make more money next year. Encourage tax planning and show your clients how they may be able to save money in the end by working with you year-round.
You have access to financial data that can inform crucial decisions and make the entire company more profitable. And when you encourage this communication, others will follow suit, especially when they see how it can improve business. When one business function is working well, but the others are failing, it is like two people on a small boat out to sea. One person says to the other accusingly, “Your half of the ship is sinking!” When the boat goes under, it will be of little comfort to the accuser if his half of the boat sank last.
A good example of this is a frame shop that frequently bragged about how much business it was stealing from its competitors. But once you looked at it more closely, it was found that every sale was losing money. They were outselling their competitors only because their competitors couldn’t afford to sell the frames at those low prices either. The key difference is that their competitors were aware of this fact. A profit expert not only has access to this information, but shares it with those in marketing and production so the business doesn’t lose money.
The important thing to learn here is that these functions can begin working closer together today. Finding the problem is only useful when there is still time to do something about it. A coroner wastes his time scolding bodies on his slab when he tells them they should have exercised more. Make sure that you don’t wait to analyze your financial data during a “post mortem” exam. Begin working more closely with the other two functions today. This will not only improve business profitability, but it will increase your value as a tax preparer.
As an accounting professional you enjoy the tremendous capacity to increase your value to the businesses you work with. Imagine advancing from your current position to full-financial service provider like Singapore outsourced accounting service. You will then have the ability to inform business owners of key decisions they can make to increase profit and enjoy true financial success.
Universal Accounting Center can help you become the Profit Center Expert of any organization you work with. UAC’s expertise in small business accounting can help any tax preparer become that invaluable cog in the business machine. Most small businesses lack the confidence and the knowledge to analyze their fiscal standing and make profitable financial decisions. With training as a Professional Bookkeeper, you could provide the information and direction they need to make their businesses succeed. Don’t wait to give yourself a promotion as the Profit Center Expert of those businesses you work with. Enroll today!