Blog | November 18, 2020
Four Things You Must Consider When Setting Up Your Accounting Systems
Accounting is not just a matter of dollars and cents. Sure, the discipline and the tools it employs track income and expenses. Yet, its capabilities go beyond day-to-day tactical uses and extends into your business strategy, providing insight into how to build a financially sound, sustainable business.
However, to get the most from our accounting systems, we need to first lay a solid foundation upon which we can increase revenue, grow profit, and ultimately achieve long-term success. There are many factors that play into this discussion, but here we address four:
Answer a Few Basic Questions
First, what are your goals, short- and long-term. Do you want to grow revenue or improve efficiency? Are you building for long-term success, or a sale or merger? Then, ask what are your benchmarks, who are you serving, and what are your business needs?
Answer these types of questions, then devise a strategy to hit the mark. Know who you are, what you want, and how you aim to get it.
Accounting, as it tracks customers, expenses and earnings, profit and loss, will play a major role in answering these and other questions. By keeping precise, easy-to-access records of these data and more, accounting will help you stay on track and …
… Seize opportunities. Accounting goes beyond what’s in the books. It not only provides valuable information on the health of your business, but it can also give you the confidence to take risks. Of course, solid accounting can also help you overcome tough times, too.
Either way, approach accounting as more than just, well, an “accounting” of numbers. Instead, consider it a valuable source of insight for growth and sustainability.
Spend Your Money … Wisely
This point is similar to the previous one, but one that emphasizes this: Use your accounting system to empower you to invest in your business. As you need to know when you can take advantage of an opportunity, you also need to know when you should cut expenses, as well as increase them.
A solid accounting system lays the groundwork for the type of analysis that helps you understand what is, and is not, a solid investment. In other words, which investments will earn dividends.
Take, for example, your employees. Maybe you could get away with fewer field technicians. While you would spend less on salaries, you may cause your other technicians to be overworked, negatively impacting your service reputation and company culture.
Don’t just look at money as something to be saved. Invest in your people, tools, marketing, and other resources that help your business grow. In the long run, it will be infinitely more valuable than saving a few dollars.
Find Accounting Tools That Can Help YOU
Navigating the world of finances for any business can be daunting. That’s certainly true of running a pest control company. There are, however, tools available to make accounting much easier.
For example, 7 Software’s reporting tool helps you track accounts receivable, sales, and annual revenue. While our pest management software might not be the only accounting support you need, our suite of tools reinforces strategies and actions that will help you grow your business. See it for yourself! Contact us, or schedule a free demo of our software.