How to maximise profit. Various strategies at times Business seems to ignore.

1. Recommending a StrategyRecommending a Strategy
Ideas for Today and Tomorrow
Key to Successful Financial ManagementKey to Successful Financial Management

2. Goal and ObjectiveGoal and Objective

What can be done as preventive measure to
maintain company's accounting and improve
in growth of the organization.

SWOT Analysis. – For Individual as well as
organizational.
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Porters 5 Forces.
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Business Partnering.

3. Services ProvidedServices Provided

Budget & Forecast.

Costing.

Process monitoring.

Cash Flow.
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Procedures to follow.
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Focus Recruitment.
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Proper Training.
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Stock Update and Close Monitoring.
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Software up gradation and Atomization.
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In time Reporting, MIS.
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Timely Analysis.

4. Vision StatementVision Statement

We all run our Business in a very effective and efficient way but why
wait for something to go wrong to look for change. Business planning
in advance helps to create focus on key areas avoiding costly
mistakes. I can provide advice to management in a variety of scenarios
on how to maximise profit, reduce costs and improve operating
efficiencies by using existing system data.

I am a qualified Engineer as well as a qualified Accountant. Which
helps me in solving problems systematically.

Having worked for various industries being heavily involved on all
processes in Accounting functions. Preparing statutory accounts and
reporting to HMRC. I have learnt and changed the infrastructure, ways
of reporting, types of reports and processes of a number of
companies.

5. Today’s SituationToday’s Situation
Case1: Company is making profits. Why change?

Can company make bigger profits with changes?
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Are key Customers and Suppliers reliable?
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What happens with a loss of any one?
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What happens to profit?

6. Today’s SituationToday’s Situation
Case2: Company is making loss?

We need to look at everything before going for big cuts.
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Will the cut in key areas make the loses even higher?

7. Key operational areas to reviewKey operational areas to review

Budgets & Forecasts: Should be set after understanding the
strategy and objectives of the company for the year or period after
reviewing the competitive environment and other external factors
such as the economy.
Any changes in the fundamental factors should result in a change in
the forecast to reflect these differences.

Costing: Review should be done through out the year. What
changes has taken effect? What costs are actually included? Not
including direct costs can fundamentally effect the profitability of
company.
Customer and product/service profitability has to be looked at on a
regular basis.

Processes: Nothing changes with technology and one person
keeps on doing exactly what their predecessors are doing. Company
has more staff than they require. Removing processes not only make
staff efficient but also removes wastage.

8. 
Cash flow: Credit control should be well maintained and all the
outstanding debt should be collected without having to put Customer
on hold.
Payment terms from suppliers should be pushed to the limit without
negatively affecting the Company’s credit rating. This helps in
preparing projection as well as preparing one payment run rather
than multiple runs which takes extra time and effort.
Red flags should be raised well in advance from the cash flow report.

Procedures: Most important for company to follow these written
procedures in sales and marketing, purchasing, staff expenses,
authorised signatories, authorisation limits etc. This will ensure that
all staff comply with company policies and that any new staff have a
procedure they can easily follow by reading the policy guide handed
down to them.

9. 
Recruitment: Companies with high turnover not only shows
company management are either de-motivated, staff feel constant
pressure to perform or they may simply dislike task. Not only does it
add extra cost to recruitment but also to salary when a hand-over is
taking place.

Training: Staff should be regularly trained on all process rather than
job specific. This will enable them to cover for holidays or absence
and the variety in duties may give staff more motivation and
enthusiasm for their jobs. It is vital that the staff have a strong
knowledge of the business that will help them in executing their
duties as well as providing support to make good/correct
management decisions.

Stock control: Stock should be regularly reviewed to decide what
the requirements are on a monthly basis or quarterly basis to
facilitate more efficient purchasing decisions which will support
operations as well as minimise stock holding and valuable cash
invested in unnecessary stock.

10. 
Software & Automation: This should be used where there are
many repetitive steps taken to process a high volume of data. This will
enable the finance team to focus on more value added activities such
as analysis or developmental work to improve operating efficiency or
profitability.

Choice of software is always recommended. Cheaper software is not
always the option.

Systems changes involves:

systems reviews……. sourcing alternative solutions…….implementation.
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Any issues in implementation can cause the company lot of problems.

11. 
Key reports: Companies generate numerous reports but they lack
information any value so that they are eventually discarded.

The timing of the reports is very important so that management can stay
on track with sales and profit targets. Weekly sales reports should be
prepared against target to monitor progress. Any negative variances
should be reviewed and corrective actions implemented to get sales and
cost back on track as needed.

Analysis: It is key to be able to review numbers in order that
correct important management decisions can be made which can
positively or negatively impact on the business if it is done rightly or
wrongly. It is vital that the Finance Team is able to provide
commercial insights to the numbers and as well as to make
recommendations on how to improve the situation.
 This is done by using experience to source, order and present the data, as
well as utilising advanced finance techniques to arrive at sound and robust
conclusions.

12. I can provide advice to management in a variety of scenarios on how to
maximise profit, reduce costs and improve operating efficiencies by using
existing system data.
For further help please contact me on:
Khanna@hotmail.co.uk
00 44 7880500329

https://www.linkedin.com/in/rajesh-khanna-acca-3691b0116/