The numbers are out. And if the figures from Statistics Canada are any indication, it would seem that small businesses in the region are not as established as they would have wanted. According to the said report, service-producing SMEs in Canada have a 54.8 exit rate. If anything, this alarming statistics should serve as a wakeup call for business owners like you. If you think your business is in danger of bankruptcy, now is the most opportune time to seek professional management accounting services.
At this point, you might be a little hesitant about seeking the help of a management accountant. So how about taking a look at how management accounting can influence your business? Here are 10 ways your SME can reap unparalleled benefits from a management accountant.
1. Improves the efficiency of business financial processes.
A management accountant creates, implements and strengthens financial processes for your SME, making business financial management a breeze.
2. Mitigates business risks.
There are innumerable financial risks that come along with managing your own enterprise, especially if you are eyeing corporate investments. A management accountant works well in keeping those risks in check.
3. Sets business financial targets.
The management accountant’s vast knowledge of your critical business numbers empowers him to help you set feasible business financial targets. The operative word there is “feasible”.
4. Initiates price-fixing and product mix selection.
Misaligned pricing and product mixes can wreak havoc in your annual revenues. A management accountant can ensure that these items are in order - not too overpriced but not underpriced, either.
5. Maps out your finances.
As a professional bean counter, a management accountant can assist you in budgeting tasks, helping ensure efficient cash management initiatives.
6. Strengthens the integrity of your business.
A management accountant puts order and efficiency in your business. To that end, he can shape external perception about your business, specifically when dealing with numbers and figures.
7. Veers you away from defective processes.
A management accountant serves as a lookout for defective financial processes which could ultimately turn your business finances upside down.
8. Aids in effective communication.
Since the management accountant knows the overall state of your business finances, he can also be an instrument in voicing out the management’s plans for the business, specifically those that are directly related to the company’s business finances.
9. Minimizes production cost.
A management accountant is the ideal strategist. He can look into production costs and try to find ways to bring the costs down.
10. Conducts socio-economic assessment.
A management accountant can put his analytical and accounting skills to work to assess current demands that are brought about by socio-economic factors. Your employees’ salary and compensation packages fall under this category.
A management accountant can make a world of difference for your business and your cashflow. If your business is treading the road to expansion, collaborating with a management accountant is your best bet.
On the lookout for professional management accounting services? We can help! Get in touch with our qualified advisers at D&V Philippines today!