Profit Is Your Company's Primary Goal: How To Acquire and Keep More Of It   by Christine Harrell

in Finance / Accounting    (submitted 2010-03-01)

In medium to large businesses it's easy to get so involved with details of daily operation you lose sight of the reason for your company's existence: making money. All other considerations are secondary to that. Never forget this lesson.
Everything Is a Path to Profit
Companies emphasize different aspects of doing business. One might work to create a better quality product. Another could push great customer service or employee morale. Still others might put high sales volume or low production costs as a priority. In fact all of these efforts are secondary to the real goal.
Why do you want to make a better product? To make more money. What will happy customers and motivated employees generate? More money. Increasing sales, cutting costs or any other initiatives within your company have the same goal. Unfortunately some executives become so obsessed with the short term objectives such as improving marketing efforts, they lose sight of the ultimate goal of improving the company's bottom line. Once you see everything you do as a path to financial success, it becomes easier to balance different activities.
Start with Professional Financial Advice
Accounting is not sexy. Corporations brag about the awards they win, customer satisfaction surveys, or record profits. Few executives boast about hiring the best accountants in the industry. Yet solid accounting practices are at the heart of a financially successful business.
Many organizations don't have the time or experience to hire, train and maintain a great accounting team, which is why a growing number of businesses are turning to outsourced accounting departments. They get the benefit of top-notch accounting and bookkeeping services without the administrative costs associated with running the department. Advances in information technology mean there is no longer a reason to have internal accounting operations. You can check your books online just as easily using an outsourced accounting department as you can with an internal financial team.
Use the Financial Tools You Have
Once you've developed a partnership with an outsourced accounting department, take advantage of their capabilities. Your accounting team should be doing more than filing your taxes. They are an integral part of ongoing financial and business planning.
Most executives don't look at financial reports often enough. They may not really understand the information presented and don't want to admit it. Or they might feel the financial details don't affect the big picture view. Nothing could be further from the truth.
The current and future states of a company's finances are critical in daily operations and long term growth. Organizations run by executives who are well versed in the financial picture are more likely to be successful. Although executives should have a grasp of accounting fundamentals, an outsourced accounting department presents the data in a way non-accounting personnel can understand.
Contract with an outsourced accounting department today and get control of your business's ability to generate a profit.