Today we consider the question: are your processes keeping up with your business? This is something that every business owner should reflect upon frequently. Not only does it consider business growth and industry change, but it also acts as a reminder of the importance of business processes and their influence on every aspect of your business success.
In this article, we’ll help you to ponder the different perspectives of the question, with the ultimate goal of helping you find ways to improve your profits.
It all comes back to the numbers
When discussing business and finance operations, we are effectively talking about ways to enhance profit and grow your business financially.
At bluepath, we believe that it always comes back to the numbers. That’s why we don’t offer business advisory or business processes services without first understanding how your business is functioning financially. As a bookkeeping services provider, we are uniquely placed to view your daily financial transactions, then provide insight and advice to strengthen business performance.
Aligning your finance and business operations
What worked for your business 10, five or even one year ago may not be the best solution for right now. Technology, software and processes are constantly evolving, and it is important that you recognise if something is outdated or is no longer serving your business.
Here’s an example. Bookkeeping used to be a manual and technical task, dependent on the calculations of the bookkeeper or business owner and the storage of folders or even boxes of paper records. Nowadays, technology like Xero has taken bookkeeping to the cloud, utilising online technology to make the process simple and more insightful. Not only has it made the process more collaborative, but it has also boosted accuracy and efficiency.
Another example of processes changing with time and technology is the process of payroll. In the past, employees may have collected a physical payslip at the end of each working week. Or more recently, employers may have manually completed each payslip, processed the payment via a bank transfer then printed or emailed the payslip to the employee. Once again, technology like Xero has automated and streamlined this process, ensuring the accuracy and timing of each employee’s pay.
While these examples show quite dramatic changes to processes concerning technology and automation, other parts of your business could also be aligned or improved. For example, when was the last time you reviewed your business operations, such as your manufacturing, marketing, sales and advertising? Or, more specifically, your daily tasks and procedures such as planning, organisation, communication and coordination.
Finding 1% improvements
We’ve already discussed the importance of reviewing processes and business operations. But why is it important to review and improve them? How can it impact the performance of your business? And can small changes make a significant impact?
While a 1% change may not sound radical or influential, we know that minor improvements can lead to a significant change in your bottom line; we have seen this with numerous clients over 17 years. Let’s explain what we mean. If you’re a business in the hospitality industry and dealing with multiple manufacturers or suppliers, we could look at opportunities to minimise costs with these providers or improve your process with them to reduce operational costs.
This change isn’t going to suddenly boost your occupancy numbers or revenue, but it will change your profit. We know that if we look for opportunities like this in all aspects of your business, we can reduce expenses and improve efficiency, thereby improving your bottom line.
Ultimately, as your outsourced finance department, we’ll alert you to every way you can improve your business. Whether that’s a minor 1% change or transforming a certain part of your business, we’ll do everything we can to get your business on track, and help you to thrive.
Connect with bluepath
If you’re looking for an expert team to be your outsourced finance department, get in touch with our team today.
Contact bluepath on 0208 866 1608 or leave us a message.