Are you racking your brains over how to increase your company’s revenue or make it profitable? Does the idea of business growth seem like a vicious circle which calls for more capital to begin with? Is cost-cutting simply not making up for your projected bottom-line figures? Fret not! These are thoughts common to most people in the growing stages of their enterprise. And the ways to tackle them aren’t lying far from you either. We bet you wouldn’t have thought of accounting services in Dubai!
If you are running a start-up in Dubai, growing your revenue might be easier than you think. You’d be surprised to know the ways your accountant can help.
Essentially, the 3 fundamental means of growing your revenue are:
- Increasing the number of customers
- Increasing the number of times they buy from you
- Increasing the average ticket size
Here are 5 ways your accountant can, directly or indirectly, help you attain these.
1. Identifying the Key Performance Indicators
For any business, there are aspects that are more directly pertinent to the company, and, consequently, have a greater impact on its business. These are known as key performance indicators (KPIs). For instance, in a service industry, the greatest cost is invariably the opportunity loss of the time one’s staff sits idle.
An accountant has a fair idea of the KPIs for your industry. They can set these up for you and even enable recording these so that your most valuable metrics can be measured and calibrated over time.
2. Optimizing Pricing
Your accountant may be able to benchmark your pricing with the industry standard. In most cases, one may be surprised to find out how under-priced their products/services are. Subsequently, a change in the pricing structure can provide your revenue a much-needed impetus.
3. Recognizing Valuable Clients
It is worthwhile to perform an analysis on the sources of your revenue. Your accountant can carry out a review of your profitability against each of your clients. That way, you’d be able to determine which customers are the most important to your business. It is often the case that a large part of your business comes from the most painless clients, and yet they are ignored.
4. Weeding Out Unprofitable Offerings
By and large, 20% of your products/services contribute to 80% of your sales. It is on these 20% that you should be focusing on. Your accountant can evaluate your product line to identify the underperforming ones. Of course, they’d have to be benchmarked against relevant parameters like cost, margin, renewability, etc. This would go a long way in budgeting and product planning.
5. Arranging Funds
If you are looking to expand your business, it is likely you might need capital to invest in workforce, infrastructure, technology, etc. In addition to streamlining your bottom line by sorting tax, your accountant can advise you on the best means to channel this capital from – depending upon your company structure and operations. Generally, an accountant can utilize one’s relationship with banks, investors, etc. to land you a lucrative deal.
For these reasons (and many more), do get your accountant on board in planning your revenue and profits. Their knowledge of financial planning and best practices will complement your business experience perfectly.
Are you a business operating in Dubai or the rest of the UAE, and have plans to grow aggressively in the next 6 months? Do you find yourself brimming with ideas on how to grow your revenue, but need guidance on how to go about it on ground? You’ve come to the right place – we at JAXA Auditors & Accountants can help you with ingenious ways to shoot your revenues and profits in the UAE. Over the past decades, we’ve advised several firms on tax planning, accounting and business planning in Dubai – with remarkable results. For any information, contact us today – we’d be happy to help!