Are Tough Times Ahead?
All the economic indicators tell us that we are still looking at some tough trading times ahead.
In that regard, we have prepared a "Tough Times Business Checklist" which we hope you will find useful as you look at ways to keep your business successful in this environment.
Please review the ideas we have presented and talk to us about how we can help you with implementation. We have helped a number of clients recently to control their costs and maintain their revenue base.
What is really important is that you take steps now to make sure your business is "ship shape and Bristol fashion".
Please let me know how we can help.
Trevor Gough, BComm, CGA[Ascend Financial Certified General Accountant]
P.S. Take action now to preserve the health of your business
|Tough Times Practice Management - Immediate Action Plan No||Action Item||Completed|
|1.||Review your Budgets and set targets for 2014.|
|2.||Get rid of can‟t pay/won‟t pay clients.|
|3.||Bill out Work in progress on a daily basis.|
|4.||Review debtors list and chase up overdue bills.|
|5.||Offer existing debtors extended payment terms and/or discounts.|
|6.||Establish a fee-funding facility (for example Premium Credit).|
|7.||Make sure your invoices contain explicit payment terms.|
|8.||Assign responsibility to one individual for billing and collections.|
|9.||Agree extended payment terms with all suppliers in advance.|
|10.||If appropriate, review banking facilities and discuss future needs.|
|11.||Put extra effort into making sure your relationships with your better clients are solid.|
|12.||Focus more on what your client's revised needs are.|
|13.||Detail the services you can provide you clients during tough times|
|14.||Publicise to your clients that these services are available|
|15.||Review and flow chart the main processes in your office (e.g. accounts and tax production) and challenge the need for each step.|
|16.||Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).|
|17.||Use „bottom up‟ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost saving.|
|18.||Review your staffing needs over the next 12 months and make weak or unnecessary individuals redundant now.|
|19.||Get your members of staff involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.|
|20.||Review your list of services and eliminate those that are unprofitable or not core services|
|21.||Establish your key performance indicators (KPI‟s) and measure them on a daily basis (e.g. daily charge time –v- budget)|
|22.||Review efficiency of office processes and consider alternatives such as outsourcing certain activities locally or overseas.|
|23.||Pull everyone together and explain firm‟s strategy and get their buy-in.|