May 19, 2020

3 ways to earn more profit for your company

Business
small business
business investment
Profit
qqtqtqt etqt
3 min
3 ways to earn more profit for your company

As someone who’s running a business, you most likely have a range of goals you wish to accomplish for your company. However, without a doubt, one agenda remains at the top of the list: earning a profit.

REALTED TOPIC: Don’t let bad credit stymie your business aspirations

After all, it’s earning a profit that will allow you to stay in business and hopefully continue to grow. If you’re company isn’t making money, then how do you plan to keep workers and support yourself?

Whether or not profit has been a main concern in the past, it’s definitely important to start considering the topic.

The following tips can help you with the task of earning a profit for your company.

Understand that earning a profit to keep your company running is imperative

If you want to your business to stay open, then you have to earn a profit—period. And while adopting this mindset may seem difficult (as with everything else, it’s easier said than done), it can still be achieved.

With this new attitude, the goal of earning a profit should be a little easier to accomplish. You can now alter your business model (whether that’s focused on your marketing needs, improving on leadership skills, etc.) and make sure that revenue is now a top priority.

It’s all starts with your attitude. After all, if you don’t have the proper mindset, do you really expect to earn a profit?

Buy low, sell high

Seems pretty obvious, right? But are you actually following this rule of business?

Years ago, businesses may have been able to survive on lower profit margins—but not anymore. Increased overhead and competition, as well as digital offerings that allow customers to quickly and easily compare prices/services of your competitors, means that it’s imperative to have higher margins and repeat business if you want to survive in today’s economy.

Try and use technology to your advantage. Also, keep your eye on your costs such as the growing numbers of hidden expenses—focus on maintaining high margins and repeat sales.

Know your business numbers

 As stated, you need to know your business costs, but you also must become familiar with numbers that will accelerate your bottom-line growth.

In order to multiply your bottom-line results, then keep the following areas on point:

  • Leads
  • Sales conversion rate
  • Average dollar sale
  • Average number of transactions
  • Profit margins

While generating more leads for your company can be difficult, start the overall process by trying to increase your profit margins.

 Don’t forget: you can always boost profits by raising prices. However, don’t go crazy; you don’t want to offend of scare customers. Few people will notice a small increase in price.

Lastly, just remember that all businesses need profit in order to survive.

RELATED TOPIC: How a business can protect itself from bankruptcy

[SOURCE: entrepreneur.com]

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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Tax
Compliance
financeleaders
Deloitte
Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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