We all knows how important it is to review the financial statements regularly and react to the financial situation. This has never been more important than in the changing business environment. The business reaction can be changes in short to medium-term business plans and, for some businesses, changes in long-term business plans.
In the volatile bsiness environmenet, it is a struggle for the CFO’o to deliver a healthy financial result, and for the operations, to sell products / services at a good margin, maintain the client base, monitor customer habits and reacting to them. The businesses are left with no choice but to employ measures to counter-effect these conditions to maintain and grow it profitability.
Cost cutting is the obvious choice for most businesses to maintain its financial health and be competitive. There are various cost cutting strategies, but the most commonly used strategies are cutting cost at expenses level, Products or division level and at a geographical level.
Whichever method the business chooses to apply, it has to be careful not to cut such costs, which may have a negative impact on the longterm future of the business.
Create a happy environment, happy and motivated employees will do wonders for your business, not only will they be more motivated to perform but they will perform better and will be more productive.
Review our organzation chart if you haven’t reviewed it recently. Update your organization chart by creating departments to make roles and responsibilities more clear or remove department / manager to create a leaner process.
The aim of the work process review should be revention of waste, be it time, labor, material or any other resource spent in producing a product or service
Review if all your employees have the necessary tools to do the best work. Look at your bookkeeping software, communication system, internet speed and fax / coping / scanning machine. Improving your hardware and software will have a positive impact on productivity.
They are your most important assets. A team of the right caliber can make a difference between business success and failure. Hold regular meetings with your staff who are in the field, give feedback, recognize and reward at the approprate time, receive feedback and appreciate it.
If you read your financial statements regularly, understand and react to them properly, your business is more likely to strengthen its financial position in the long-term.
Visit our website at www.dsvpartners.com.au and see how we can help you