Every day you spend countless hours working at your business. You knock on doors of potential customers, put your heart to the growth and success of your business. You are a growth-oriented entrepreneur, and nothing can slip past you.
But, do you know the earning potential of your company? Can you forecast challenges? Can you make informed decisions to capitalize on opportunities? You may need the services of an accounting company in Singapore to answer these questions, especially when facing lenders or investors. Here are the questions you must answer and how you can answer them.
How are the Sales Figures?
In any meeting with potential investors or lenders, the first question that always pops up is “What are your sales?” It is an essential indicator of your business as it proves the viability of your product or service. If you have an in-house accountant, or you do the bookkeeping yourself, you can extract the overall sales figures from your records.
But, there’s more to sales than just end of year figures. Outsourcing to an accounting company in Singapore offers a more insightful analysis of the sales figures. The trends in sales will present more useful information about your earning potential than a blanket end of year figure. Also, the trends in sales will enlighten you about the inroads by competitors, whether markets are shifting, the impact of a management decision or if a campaign was successful.
Is the Pricing Right?
Getting the right price is more complicated than the sales figures. It requires a detailed analysis of the costs associated with each job and calculating the right mark up.
Of course, there are general pricing strategies, such as offering discounts to your biggest customers. However, without a detailed price analysis, you could run into losses.
It’s hard to generate this kind of information when you’re handling the bookkeeping or relying on an in-house or part-time accountant. However, outsourcing to accounting firms in Singapore will guarantee that you have the pricing intel right on your fingertips.
What are the Profit Margins?
You could have impressive sales, but that doesn’t mean that the profits are equally doing well. Instead, your production costs could be running down your sales. Can you generate a profit and loss statement per department, product or unit? If you’re considering outsourcing to a reputable accounting firm in Singapore, you can benefit from receiving professional advice in improving your profit margins.
Have You Defined a Customer Niche?
Defining a client niche is not just about wordy descriptions. You need to know the location of your customers, how much they earn, and how much it costs to acquire each client?
This will inform you of whether you are spending excess resources on each customer. It will also trigger you into thinking of more creative and less expensive ways of acquiring clients.
Is Business Scalable?
Answering these questions will help you figure if you are a growth-oriented entrepreneur. However, for the business to grow, it has to be scalable. Therefore, the last and interest sparking question you can answer yourself or investors and lenders are: “Can you make the pie bigger?”
The best accounting firms in Singapore will not just provide excellent bookkeeping services. You will also get to know more about the market size, pricing models, locations and potential alternative ventures that will help you to scale the business.