Source: Entrepreneur | Repost QBScott – 3/11/2021 –
As business leaders, we have entered into an entirely new reality: The ongoing pandemic has forced many to reevaluate how we currently operate traditionally entrenched industries and working models. Many companies are still reacting to this “new abnormal” and have not taken the time to evaluate the strategic impact and address if or how they may need to pivot their current company trajectory. More than ever, business leaders have a clear and present obligation to reevaluate their organization from stem to stern with a critical eye towards longevity and financial success.
One of the opportunities presented in moments such as this is how we can focus on and catalyze strategies that may have been brewing in the background for years. Times of immense change can also be a tremendous motivator to galvanize your business stakeholders to action around bold new initiatives. Before considering any such drastic changes, however, you need to consider five key questions that will serve to guide you and your company through this time of change.
While many businesses are scrambling to increase their sales, they may be overlooking strategies for obtaining a healthier net profit. It’s important to understand that increased sales don’t always lead to increased profits, however, decreasing expenses will always lead to a healthier bottom line. One of the best strategies for assessing your current business expense opportunities is through the incorporation of a “zero-based budget” assessment. Zero-based budgeting requires you to remove all business expenses and then add them back with a more critical eye on justification. This process can help business leaders determine spending outlays that must continue for baseline operation of the business, and expenses that can be offset until there is additional revenue or reconsidered altogether.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale