maximising profitability

The Key to Maximising Profitability

It can be hard to determine how spending money ultimately creates value and wealth within a business, but profitability is much more than just revenue minus the expenses. Outsourcing your bookkeeping to small business bookkeeping solutions is an avenue that saves time, increases overall revenue as well as maximising profitability of your business.

Cost of Opportunity

When an owner or an employee within a business is spending time doing the books, every hour spent doing them is an hourly wage and a lost opportunity cost of revenue-building work they could be doing.

As an example, as a business owner, you may be paying yourself £50 an hour, and if you spend 10 hours preparing your books each month, that is a £500 cost to the company – and that does not account for what you are worth to the business being lost. The time lost is in creating new deals, getting contracts, increasing your client base and spending time to make your employees more efficient – that could end up being thousands of pounds of lost revenue due to your time being occupied on your books.

Depreciation

There are always unforeseen expenses in any business that can end up being the cause of your business hitting the red. If you have one or two months of this within a certain period, this will be a trigger for banks and investors.

Banks look at a business’s bottom line to access risks should the business be seeking a commercial loan or a line of credit. The bank may deem the business to be too much of a risk with inconsistency in the bottom line. The same goes for investors entertaining an acquisition. Any major fluctuations in the bottom line can impact the price they would be willing to pay to purchase a business.

This is where outsourced bookkeeping services can play a pivotal role in helping a company get back out of the red.

Fine Tuning Expensive Processes

If you have outsourced bookkeeping services in Manchester, you will have an independent body that recognises cost increases and diminishing profitability month by month.

Many things go unnoticed by business owners as they think they may be small, but they certainly mount up and, when presented to business owners, it can be a huge cost to the business. Outdated software licences, direct debits still being paid past their finish and missing receipts are things that most commonly slip the minds of a business owner, but they all add up to a considerable loss.

Some owners don’t even realise when prices have gone up on subscriptions or on services that they pay out to every month. Experienced bookkeeping services are a helping hand to save on your expenses and subscriptions.

Still think a bookkeeper is not a worthy business expense? Contact the team at Pebbles Bookkeeping today to outsource the things that are costing your dearly, and get help maximising profitability for your business.

Don't just take our word for it...

Sam Phillips, Sam Phillips Builders

“Sean and the team at Pebbles provide bookkeeping services and do everything from processing invoices to payroll and then final accounts to trial balance.  They have put processes and systems in place that have helped the company track our projects and see if they are profitable and to help us generate better profitability and cash flow.  I highly recommend Pebbles Bookkeeping and often pass their details onto my contacts.”

James Balderstone, Lucid Networks

Pebbles Bookkeeping took over our bookkeeping when a full-time member of staff left the business.  Our accounts are relatively complex for a business our size because of the number of different suppliers and products we deal with, but Pebbles were able to get quickly up to speed.  We have significantly reduced our costs spent on bookkeeping activity as a result. They have also helped us move to a new accounting system (Xero), which we are already seeing the benefit of, and we’re looking forward to working with Pebbles in the future to automate more of our back-office processes.

Anne-Marie Armstrong, Amberry Marketing

I just wanted to thank you both for the help you’ve given me thus far in setting up my new cloud-based bookkeeping system ‘Clearbooks’.

Having used Microsoft Excel for more years than I care to admit, I had more than a few reservations when considering changing the way I managed my books, yet understood that I had to make the change sooner or later.

After an intense training session with Sean, (where I probably asked 101 questions), my fears quickly dissipated and I can honestly say that although it’s likely to take me a little while to really get to grips with the new interface, I’ve no doubt that this simple system will save me so much time and hassle in future.

And less time spent doing my books, almost certainly means more time with the family and an end to rushing around like a mad woman at quarter-end!

Thanks again and I’m looking forward to working with you again soon.

Lisa Heggie, The Gunnery

A massive thank you to Diane at Pebbles Bookkeeping & HR. You took the huge stress away from where do I start, with employee policies etc. You have created us a great, informative employee handbook, covering all necessary policies and risk assessments in a matter of no time and from the other side of the world too. I will definitely be in touch for any future help our company needs.

Wayne Dinning, Managing Director, SD Waste Paper Limited

Diane has been providing her services to my company for approximately 6 months now and I can honestly say that due to her assistance, my company is running a lot more smoothly than it has at any time over the previous 30 years that it has existed.

I would just like to say that I would recommend her services to any business, whatever the size, as I can only see that her services would be beneficial to any company that may choose to employ her services.