The accounting and financial details of your business represent more than just numbers. They represent the fruits of your labour and the heartbeat of your career as an entrepreneur. As such, they should always help inform the strategy that directs the course of your company, but how?
Focusing on Important Metrics
Metrics of the performance of your company should be integral to the way you formulate and maintain your business strategy. Financial KPIs like net profit and cash flow should be a key part of determining what initiatives or resources your company can invest in moving forward. Measuring operational efficiency can help you determine what goals need to be set regarding the management of your debtors, your inventory, and other elements. Growth indices can help you set and keep tabs on goals for growth, helping you maintain an upward trajectory. In short, understanding the metrics behind your performance is fundamental to your strategic objectives.
Marketing and Accounting
There are few things as influential over the success of your business as how you market it. Naturally, marketing is an investment that needs to provide returns to your business in the form of new customers and continued loyalty. This is what you’ll get when your business strategy is supported by effective investment in strong approaches to marketing. Financial KPIs like those listed above can in many cases inform what marketing initiatives you invest in and how. Your customer acquisition ratio, for instance, may be useful in determining whether you need to focus on new business or retention, and inform your marketing expenditures accordingly.
Having a Strong Financial Plan
Financial planning can be one of the most challenging aspects of running a business, but the challenge is well worth it. The more robust a financial plan you have, the more readily and efficiently you can determine the right goals and objectives for your company. Without strong financial planning, the road ahead can be unclear, unpredictable, and riddled with unnecessary risk. Whether you need to determine your pathway into a new market, reimagine your company’s capabilities, or identify and correct errors in your business strategy, a financial plan structured with the help of an experienced CPA will help you every step of the way.
The Calgary CPAs here at Cook and Company aren’t just great accountants, they understand the nuances of financial strategy that define the success of a business. When you work with us, you plan for success. Call us at (403) 768-4377 to learn about our financial planning services.