Talking Cents

Our small business accountants in Sydney tell you how to increase your profit margins

Many business owners fall for the mistake of just needing to increase sales in order for you to increase your profits. There are many ways that your business can increase profit margins without the extra costs or more customers to do so. Our small business accountants in Sydney will give you some insights on how to do so.

Fine tuning your business will allow for smoother operations – as your business accountant we want to help your business with these simple tips:

• First things first, we need to figure out your gross profit margin – get some benchmark figures that your business can work off of
• Analyse your profit margins from each business sector that you have – this way you are identifying which part of your business is costing you more money, making you the most money or simply not working
• Don’t be afraid to increase your prices! Higher costs mean you can serve less customers and get the same amount of profits
• Review all of your prices in respective to each client – some are more price sensitive than others
• Make sure you don’t discount your products
• Don’t compete on price
• Watch your suppliers bills and look for ways to get discounts from them
• Be sure to use proper inventory management to ensure you don’t overstock or understock

They are just some simple tips that you can implement into your small business accounting to improve the overall profit margins!

Feel free to get in contact with our small business accountants in Sydney if you have any enquiries or you can check out our services here.