With the new year come the new year’s resolutions. As a business owner, you might resolve to become more prosperous: earn more, worry less. You can do an in-depth analysis, AKA a business improvement audit, without your accountant.
First, don’t fear the audit
It’s a chance to improve your business, cash flow, and lifestyle. Ask yourself what you want out of the review and keep that in mind when going through the process.
Second, don’t make it complicated
The audit you’ll do yourself isn’t as complex as the one your tax consultant or accountant will carry out. Your can look at profit and loss, strength and weaknesses.
Third, do it in small chunks
Conducting an audit all in one hit will burn you out. Humans need breaks and you can only sit still for so long before the task loses meaning. Look at what you want to get out of the business improvement audit and divide tasks accordingly.
Here’s some of the questions people ask themselves when they start a business improvement audit:
- Where am I making money?
- What’s losing money?
- Is my marketing effective? (Facebook, Google Ads)
- What incentives can I offer new and existing customers?
- Is there a recent development/gap in the market that I can fill?
- What’s the competition doing that I can do as well?
This business improvement audit will take time because you’re scoping out the competition, and the numbers from your marketing campaigns alongside profit and loss. New developments happen everyday across all industries, so there’s plenty of gaps to fill.
Online shopping is a great example. With the introduction of Afterpay many more shoppers are filling their carts and paying off the bill in equal installments over four weeks. Online retailers are hopping on the Afterpay bandwagon and using it in their marketing. This increases cash flow and the number of customers in one hit.
After reading through this, you now know that a DIY business improvement audit isn’t a complicated process. You’ll go into the nitty-gritty with the accountant at your appointment. In the meantime, grab your notebook, a pen and get going!