How to Leverage Technology to Improve Your Company’s Bottom Line

How to Leverage Technology to Improve Your Company’s Bottom Line

Times are changing and fast! If you want your business to succeed, it’s imperative to adapt and keep up with trends in technology. By leveraging technology in your business, you can create a positive, productive, and, most importantly, profitable environment.

Investing in technology for your business can actually make you money, more than covering the cost of upgrades. For instance, are you a sales-based business? Then you’ll want to invest in sales management software. If you’re a manufacturing company, then you’ll want to look for programs that will help you manage your inventory and distribution.

To properly leverage technology in a way that will improve your company’s bottom line, ask yourself (or your team):

  • Will this technology help generate more revenue?
  • Will this technology help my business become more efficient or productive?
  • Will this technology minimize risk?

With that in mind, here are three ways to leverage technology that can benefit any company.

Leverage Cybersecurity Technology

Did you know that 4.5 billion records were stolen worldwide in the first half of 2018 alone? What’s more, Statistics Canada found that approximately 20% of cyberattacks that happened in 2017 were aimed at small businesses with 10 to 49 employees.

A successful cyberattack is not only bad for your business’ reputation, but it can quickly become a major expense. In fact, the Ponemon Institute found that Canadian companies spent $6.1 million on breach-related expenses, and approximately 50% of Canadian businesses felt employee productivity was impacted due to a cyber-security incident, according to Statistics Canada.

The lesson is that you can’t let a cyber attack affect your company’s growth. You need to invest in proper cybersecurity technology. Almost every company can benefit from investing in advanced detection and protection tools. For example, some technologies use defensive deception techniques to identify attacks early on and move critical data before it is accessed or damaged. This is a great way to minimize risk and improve your bottom line. You might also consider investing in the use of decoys, web application firewalls, IPS, and web-based deception solutions.

Leverage Digital Marketing Technology

Every business needs to generate leads and go after potential customers if they want to keep growing and scaling. One of the best ways to do this is by leveraging digital marketing technology.

For example, Facebook isn’t only great for connecting with friends or watching cute cat videos; it’s also one of the best advertising platforms around. By investing in paid Facebook ads, you can reach scores of new leads. And the best part? Facebook makes it easy to target your exact audience, so the money you spend on advertising has a higher chance of reaching the people who are actually interested in buying your product or service.

Another fantastic way to reach potential customers is through email marketing. In fact, email generates $38 for every $1 spent, which is a whopping 3,800% ROI!

Investing in technology such as MailChimp can be a great way to automate your email marketing, allowing you to focus on the strategy behind your email campaigns. MailChimp also features reports that make it easy to see how successful an email campaign is at engaging your target audience. This truly is one area where leveraging technology can make your bottom line soar.

Leverage Cloud-based Accounting Software

Do you find managing your invoices, bills, and receipts a hassle? As an entrepreneur, you probably love what you do, but what you probably don’t love is spending hours and hours managing your books. You can’t let it fall by the wayside though as failure to properly manage your books can result in financial disaster for your business.

Fortunately, there’s an ever-growing suite of organizational tools and technologies that will help you reduce the headaches of managing your books while also giving you more free time to do what you love – grow your business!

Cloud-based accounting software, also known as software as a service (SaaS), provides you with access to technology on a subscription basis. This allows you to access your business data anytime and anywhere with an internet connection (sometimes on almost any device).

You can grant access to your cloud-based accounting software to anyone on your team. That means your staff can quickly and easily do their work regardless of their physical location. For instance, if your sales rep needs to add an expense receipt or your project manager needs to verify an invoice from a supplier, cloud-based accounting software will streamline the process. It also helps keep all your invoices and receipts organized, so tax time is a breeze.

If you’re looking to boost your bottom line, then you’ll definitely want to leverage the power of cloud-based accounting technology.

The Number Works Can Help

We specialize in launching cloud-based accounting systems! We also provide bookkeeping, cash flow strategy, and business plan management because we want to help you turn your passions into profits.

So, if you’re looking to make better informed business decisions and get a stronger understanding of your business’ finances, don’t hesitate to reach out to us today and find out how we can help you tell your financial story and boost your company’s bottom line.

How to Start the New Year Off on the Right Foot with Your Accounting

How to Start the New Year Off on the Right Foot with Your Accounting

With the new year is upon us, it’s the perfect time for us to make resolutions to better our health, finances, or social situations.

But did you know that as a business owner, New Year’s resolutions offer you a fantastic opportunity to make some positive changes that will contribute to your future success? Especially when it comes to your finances and accounting!

So, if you’re looking to start the year right, here are some essential accounting tips that will help you tackle the daily accounting challenges of your business and get you on track for success!

Plan Ahead

As the old saying goes, “If you fail to plan, you’re planning to fail.”

As a business owner, planning your fixed expenses for the whole year, rather than a monthly basis, will help you start 2019 off on the right foot. Don’t forget to take seasonality and other potential downturns into account so you can be sure that your minimum expenses are always covered.

During your business’ peak sales months, plan to set more money aside. This will help you cover your expenses if harder times come later in the year. By getting a firm grasp on your company’s fixed expenses, you will have a clear view of your business’s future and how to plan for taxes appropriately.

You should also take this opportunity to plan for emergencies. Determine how much money you can set aside for any significant, unexpected expenses, such as losing a major client, economic downturns, or other crises. The amount of money that needs to be in your emergency fund depends on the minimum expenses necessary for your company’s survival. A good rule of thumb is to set aside at least six months worth of expenses.

But what if you can’t afford to save that extra money right now? In that case, it’s a good idea to make sure you have a line of credit set up with your bank so that if something unexpected takes place, you can use that money (with an affordable interest rate) to keep your business afloat.

Take Time to Review Your Business

Set aside some time to reflect on 2018 and determine how your revenue and profits compared to the previous year. Determine if your sales numbers are trending upwards or downwards. And ask yourself some critical questions such as, how much money did you have to spend in 2018?

Did you make a list of goals for 2018? If so, did you meet those goals? Taking the time to review 2018 should help you figure out how your company has changed over the past year. If your business hasn’t improved, analyze the figures to find out why and what you can do to see more growth in the new year.

Leverage Technology

It’s 2019, which means the days of tracking your expenses manually are over! If your business isn’t using computer software to help keep track of your finances, then it’s time to make the leap!

The good news is multiple technologies allow you to track all your expenses quickly and efficiently, so you can choose the one that will be a perfect fit for you and your company. By leveraging accounting software and cloud-based technology, you’ll be more informed about your business’ finances, saving you both time and money!

Switching to computer software or cloud-based technology will also help provide a near real-time idea of how your money is being spent, as well as the records to prove it.

Get a Head Start on Taxes

Not unlike how you should set aside money for emergencies, you should also set aside money to cover your taxes. I highly recommend meeting with your accountant at least twice a year – once in May and once in October. This way, you can get a sense of what your business’s taxes will look like in the coming year. Plus, understanding how your financial picture is evolving can help you keep up with how your business is growing and how much you’ll need to cover what you’ll owe.

By seeking professional tax planning advice, you’ll not only feel confident that your business is complying with federal and provincial tax regulations, but you’ll also ensure you’re getting all the deductions and credits your company might qualify for.

Hire a Professional Accountant

Every tip and trick I mentioned above will be made that much easier by hiring a professional accountant. Although it may seem like an added expense, hiring a professional accountant will actually save you money in the long run, plus your accounting fees are tax-deductible!

So, if you’re looking to make 2019 your best year yet, outsource your bookkeeping and accounting needs to The Number Works! You’ll receive all of the benefits of competent financial reporting without the headache of needing to onboard, train, and pay a full-time employee.

The Number Works is your one-stop shop for the best accounting in Hamilton and the surrounding Southern Ontario area. In fact, no matter where you are in Ontario, I can help your business seamlessly using virtual technology.

I offer a range of professional services including cloud-based bookkeeping, full cycle accounting, financial statement analysis, strategic planning, and taxes. Combine this with my passion for process, efficiency, simplicity, and helping small businesses succeed, and you’ve got the winning formula to help start the new year off on the right foot with your accounting.

So don’t hesitate to get in touch with The Number Works today and meet all of your business’s New year’s resolutions!