New Revenue Recognition Standards Have Been Released

Posted on by Randy Stemmer

New Revenue Recognition Standards Have Been ReleasedThe Financial Accounting Standards Board (FASB) released new Revenue Recognition Regulations that must be complied with by all private and public companies in all industries by 2017.  The changes are wide sweeping to say the least.  For many business owners, the new standards are overwhelming.

Five Step Reporting Process

The new five-step process for revenue recognition is as follows:

1)    Identify the contract with the customer.

2)    Identify the performance obligations (promises) in the contract.

3)    Determine the transaction price.

4)    Allocate the transaction price to the performance obligations in the contract.

5)    Recognize revenue as the reporting organization satisfies a performance obligation.

Application Illustration

A very simplified example of an application of the revenue recognition standard for a service business would be in the case where a Business Consulting firm had a three-year contract with a medical firm.  This example is provided for illustration purposes and is not to be considered accounting or legal advice.

Assume the Business Consulting firm contract specified that in the first year the Business Consultant would provide recommendations for increasing the medical firm’s revenue by ten percent for a fee of $48,000 payable in twelve monthly payments of $4,000.  The second year the Business Consulting firm would install software that would track the required revenue growth for $50,000.

Information Required

Organizations will be required to capture information from all sales contracts related to revenue with a customer.  Revenue recognition is always fluid. This is particularly true when agreement terms are updated or new performance requirements are added to the contract.

There is a technical accounting assessment that must be completed in advance of implementing any part of a proposed compliance solution.  It is imperative the intricate standards be fully understood before any accounting software system changes are attempted.  Potential parallel reporting requirements and impacts should be analyzed fully before proceeding with any implementation methodology.

It can take six to twelve months for a professional trained in the application of the standards to get a business to the point where it has a working knowledge of the complex rules.  Businesses must start preparing for the vast reporting requirements right now.  Early adoption is not only recommended, it is critical for successful compliance.

Collaboration Is Vital

The best way to prepare for the new standard should be iterative and dynamic as opposed to sudden and static.  Excellent teamwork and collaboration will be required throughout all departments including Strategic Planning, Accounting, Finance and Human Resources (HR).  Teams should be co-located as much a possible with regular and consistent communication channels in place to organize and share all the required data.

Hire an Interim CFO

One of the best ways to create and install the required compliance system is to hire an interim Chief Financial Officer (CFO) who is trained in the stringent reporting requirements.  The CFO can set the initial course of the initiative, keep it on course and plan for future compliance.

Having an independent professional involved from the beginning gives that person the objectivity they need to gain insights that normally are not available from within the organization.  The financial expert comes in, completes the job and then supports the accounting department with any ongoing maintenance work that might be required.  Pacific Crest Group’s outsourced CFOs are fully trained for this purpose.

How We Can Help You

Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Four Motivators Increase Employee Engagement

Posted on by Randy Stemmer

Four Motivators that Increase Employee Engagement

A high level of employee engagement generates longer retention, exceptional morale, strong loyalty, increased productivity and heightened profitability. It is very difficult to motivate employees without a consistent system in place.  The four cornerstones of increasing employee engagement are aligned goals, meaningful work, challenging assignments and employee recognition.

Aligned Goals

Research shows that an employee’s relationship with his or her direct manager is the single most important factor to drive employee engagement.  The extent that management is able to communicate the importance of aligning employees’ goals with the overall objectives of the company is critical to the success of their working relationship.  It is imperative that every employee understands how their work supports the company’s vision and mission statements.

Meaningful Work

Managers must individualize work assignments with each employee’s strengths, interests, career aspirations and personal development goals in mind.   What makes work meaningful to workers is understanding the impact it has on the company’s customers.  When employees believe their work improves customers’ lives, they are inspired to do their best and a sense of accomplishment permeates the team culture.  This deepens the importance of the work each employee provides to the business overall.

Challenging Assignments

Businesses need the maximum contribution from all their employees.  A mutually beneficial work relationship builds trust and helps teams adapt to changing priorities.  Being flexible and agile in the face of constant change in a global economy is paramount in increasing profitability.

Employees want work that builds on their natural abilities.  Managers must be willing to assign challenging work to all the members of their team in order to increase their skill levels.  Workers who believe their manager is there to help them are motivated to do their best work.  Authentic, small action steps can make a big difference in increasing their confidence.  Employees want to feel highly valued.

Employee Recognition

Seventy-eight percent of employees cited recognition as the main motivating factor in their careers.  Pacific Crest Group’s (PCG) Human Resources and Employee Development Services provide numerous strategies for building strong relationships between business owners and their workers. PCG case studies document how employees perform best when they feel the company they work for cares about them and is willing to listen as well as implement their ideas.  Investing in your employees’ success clearly yields the highest return over the long-term.

How We Can Help You

Pacific Crest Group provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions that your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Cash Flow Acceleration is Critical to Profitability

Posted on by Randy Stemmer

Cash Flow Acceleration is Critical to ProfitabilityOne of the most important ways a Chief Financial Officer (CFO) can make their company more profitable is by accelerating cash flows. The following six strategies are just a sampling of some of the techniques used by many CFOs today.

Prepare a Cash Budget

Prepare a monthly cash budget with weekly forecasts to track actual cash against projections.  This tool will enable you to better control where your money is going when and help you prioritize future expenditures.

Require a Down Payment

Sellers can reduce their nonpayment risks by not accepting large orders from unproven customers without doing a full credit check.  Talk with the prospective customer’s current suppliers to see what their payment history has been.

Business owners can take command of their collections by requiring a down payment before buying supplies or starting work on large orders.  If you feel there is too much risk, offer the buyer a smaller supply with the provision that larger supplies will be provided when full payment has been received on their previous order.

Consolidate Purchasing

Centralize purchasing for your firm within major profit and loss centers.  This process reduces administrative costs.  Standardized purchasing policies and procedures promote efficiency by preventing duplication of efforts.  When negotiating with your vendors, agree on the price of the goods and services first then negotiate the best payment terms you can get to save cash.

Utilize Multiple Suppliers

Prevent costly supply disruptions which can bring sales and cash flow to a full stop.  Use multiple suppliers for critical items whenever possible.  Know your suppliers’ financial status so you can alleviate potential disruptions before they happen.

Turn Inventory into Fast Cash

Turn slow moving inventory into cash by discounting it to move quickly or by returning it to the vendor.  Record and document any damaged inventory right away.  This can save cash if the damaged merchandise was not sold.  Unsold inventory can be written off as a loss for income tax purposes.

Focus on Return on Investment (ROI)

The link between your invoicing and cash flow is paramount.  Streamlining your accounting system to make sure you can measure the profit on each item sold and each service rendered is critical.  This makes it easier to measure your ROI and makes your customers happier because you are more efficient in your operations.

Pacific Crest Group’s Key Performance Indicator Guideline defines frequently used metrics and how to use them.  It provides a case study, sample forms and charts for your use.  Pacific Crest Group’s Chief Financial Officer (CFO) services provide explanations on how interim CFOs can help you.

Pacific Crest Group provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Using Cost Accounting to Measure Profit Margins in Personal Service Businesses

Posted on by Randy Stemmer

Using Cost Accounting to Measure Profit Margins in Personal Service BusinessesCost Accounting is the process of collecting, analyzing, recording and summarizing data to be used in evaluating various courses of action.  It is an excellent tool to be used by personal service businesses to measure their profit margins.

Cost Accounting Systems Allow a Business Owner to Maximize Operating Efficiencies

Cost accounting systems involve the recording and matching of all the costs and revenues in a business process in order to measure its profitability.  The system must provide the detailed cost information management needs to control operations and plan for the future in different work environments.

The most effective cost accounting systems are the type that track the costs of producing a service, predict cost behaviors and set prices.

Calculating the Full Cost of Producing a Service

A good method to compute the cost of each unique service rendered is called Activity Based Costing (ABC).  This approach is based on analyzing the costs of materials and labor as well as allocating overhead based on the specific activities performed to produce a specific service.

Predicting Cost Behaviors

Management must have reliable knowledge about how costs will “behave” at different levels of operations.  If production increases, will costs go up, down or remain the same?  Once the behavior of costs is known, the ability to make accurate cost predictions is significantly improved.

Setting Prices

Prices are set in competitive markets by the laws of supply and demand.  If a company generates a service that is unique, designed to meet specific customer requirements or is protected by intellectual property laws like a copyright or patent, the business can charge substantially more for this type of service.

Which System is Best for Your Business? 

Pacific Crest Group (PCG) answers this question in the posting “Accounting Challenge for a Local Professional Services Company.” PCG designed and implemented a new time and expense tracking system to account for the costs of projects in process and thereby measure the resulting profit.  It also created a uniquely integrated invoicing system to simplify billing.  The system allowed senior management to focus on sales, client service and expanding the business rather than being consumed in the details of managing the production of a specific service.

Pacific Crest Group provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Are You Getting too Many Financial Data Points too Often?

Posted on by Randy Stemmer

Are You Getting too Many Financial Data Points too OftenOnly thirty six percent of business owners say “they can easily ensure consistent, quality decisions at all organizational levels” and a staggering eighty-nine percent said “a stronger partnership with finance in decision-making would help them better manage their organizations in the future.”   Chartered Institute of Management Accountants’ Chief Executive Officer Charles Tilley reported “We work with a range of organizations across the world and can see that decision-making is becoming more and more difficult as complex information flows so much faster.  Too often, impulse substitutes for insight….We need a dramatic improvement in the way decisions are made at all levels (Global Management Accounting Principles Seek to Guide Better Benchmarking, Decision-making,” Journal of Accountancy).”

Management Accounting Principles Allow You to Make the Best Decisions

Management Accounting Principles are a combination of clear standards, robust processes and well-managed performance metrics. They create effective management accounting functions that support your strategic decision making systems and yield efficient operations.  Some of the critical questions underlying these successful principles are:

  • Is the process necessary?
  • Can it be eliminated?
  • Can it be automated?
  • Who is using the output?
  • How often is the output used and for what purpose?
  • Does the process add value?
  • What roles and responsibilities does the decision process require?  Are they clearly defined?
  • Are there routine “fire drills” created by a specific process?  If so, how are they caused and how frequently do they occur?

Here is How You Can Improve Your Business

The key is to challenge every step, every piece of paper, every input and output for effectiveness.  Here is a very powerful way to discover opportunities for improvement:

Conduct Process Walk-Throughs: Meet with all the people involved in the process to gain an understanding of how their work gets done.

Use Best Practices:  Implement industry accounting best practices to improve accuracy, response time, data quality, employee performance and compliance with Federal, state and local laws.

Create Process Metrics: Develop and analyze Key Performance Indicators (KPI) to measure your productivity, efficiency and effectiveness against industry standards.

Reward Success: Have milestones along the way to acknowledge people who have performed well especially if their contributions have improved the decision making process.  Although financial rewards are appreciated, recognition can sometimes be a more potent way of inspiring outstanding accomplishments.

Implement Internal Controls

The most important practices that must be implemented right away are proper internal controls.  In today’s fast moving economy, security is more important now than ever.  The best way to test your internal controls is to have them reviewed by an outsourced accounting and financial professionalLearn about outsourcing your accounting services to identify risks and weaknesses in your accounting system.

How We Can Help You

PCG provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A Pacific Crest Group professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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What is the Difference between Bookkeeping and Accounting Services?

Posted on by Randy Stemmer

What is the Difference between Bookkeeping and Accounting ServicesBookkeeping and Accounting services share common goals.  They are both critical components of building a strong business foundation, assessing the health of a business and sustaining positive business growth.  However, they handle different parts of the financial ecosystem of a business.

Bookkeeping Process

Bookkeeping is the process of recording transactions in a consistent and timely way.  It includes but is not limited to the following tasks:

  • Recording financial transactions
  • Posting Debits and Credits to a General Ledger
  • Maintaining and Balancing General and Subsidiary Ledgers
  • Creating Invoices
  • Tracking Accounts Payable
  • Completing Payroll

Accounting System

Accounting is a system that analyzes the information prepared by the bookkeeping process.  It looks at key financial indicators to gain a better understanding of the actual cash flow and profitability of the business.  A good accounting system aides business managers in understanding the impact of financial decisions to the organization.

Accounting includes but is not limited to the following activities:

  • Preparing Adjusting Journal Entries
  • Generating Financial Statements
  • Analyzing Financial Reports
  • Creating Budgets and Forecasting Models
  • Filing Tax Returns

Bookkeeping is a process that records financial transactions.  It is a subset of your accounting system.  The accounting system interprets your bookkeeping information in order to assess the condition of a company.  Accounting measures the performance of the business and reports that information to the business owners, stakeholders and investors.  It is responsible for attesting to the completeness and accuracy of the financial information based on “Generally Accepted Accounting Principles (GAAP).”

Controller and Chief Financial Officer Roles

Controllers are in charge of a company’s accounting system.  They are responsible for making sure the accounting system is running efficiently and effectively.  Controllers make sure reports prepared by the accounting system are accurate, in conformance with GAAP and completed on time and within budget.

Chief Financial Officers (CFO) are responsible for creating the long-term financial strategy of the business and the ultimate health of the organization.  In companies that have both a Controller and a Chief Financial Officer, the Controller reports directly to the CFO.

Outsourcing Bookkeeping and Accounting

An objective and independent Financial Professional can offer sound advice on how to best proceed to fulfill the business goals you set forth.  In many instances, it makes more sense to outsource your bookkeeping and accounting functions than incur the ongoing expenses of trying to handle them internally.

What to outsource and how to do it is covered in detail in the Pacific Crest Group (PCG) posting “The Rewards of Outsourcing.”  Effective outsourcing allows you to focus on your core competitive advantage and revenue generation goals rather than the daily operations of your business.

Special Event

Pacific Crest Group is a founding member of the Marin Business Forum. Our next meeting is Thursday, March 24, 2016 from 5 PM to 7 PM in the Drake’s Landing Community Room located at 300 Drakes Landing Road in Greenbrae. Lester Rosen, Esq. will provide a number of real-world case studies where employers stepped on legal landmines that could have been easily avoided with a safe hiring program.  Please go to the Events page to register for this event.

How We Can Help You

PCG provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A Pacific Crest Group professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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How to Start a California Nonprofit Organization

Posted on by Randy Stemmer

How to Start a California Nonprofit OrganizationThe first thing to consider when you are thinking about starting a new nonprofit is whether it is really needed.  The National Center for Charitable Statistics reported that there are over one-hundred-sixty-three-thousand nonprofits in California.  How will the public benefit from your efforts?

Collaboration 

You may be able to make a bigger impact by working with an organization that is already supplying services in an area you are contemplating entering.  Working with an existing organization may prevent you from diverting crucial funds and volunteers from a group that is already in operation.  This would dilute the positive effects received by the very people you are trying to help the most.

Another option to consider is obtaining a fiscal sponsor for your endeavor.  This will allow you to work under the umbrella of an established Internal Revenue Code (IRC) 501(c) corporation.  Fiscal Sponsors permit your group to receive tax-deductible donations and share resources in common pursuits through their corporate status.

Legal Structure and Issues

California provides four main structures for nonprofits as follows:

Religious Corporations are used exclusively for religious purposes such as churches and Spiritual Centers.

Public Benefit Corporations are organized for charitable pursuits such as civic leagues and social welfare groups.

Mutual Benefit Corporations are used for specific causes.  They may not exist for public, charitable or religious purposes.  Typically they do not extend Federal or California tax exempt benefits to their donors.

Mutual Benefit Common Interest Development (CID) Corporations manage common interest developments like homeowner’s associations.  They do not have to be incorporated to operate in California.

Consult with Professionals

We highly recommend having experienced professionals such as attorneys, Certified Public Accountants (CPAs) and Human Resource (HR) experts involved from the very beginning.  They can help prevent costly mistakes that could slow down or even stop your fledging nonprofit from getting off the ground.

Even though many organizations can be structured as nonprofits, most use proven business systems and processes to facilitate their growth.  Pacific Crest Group (PCG) is happy to help you get started on the right foot.  A good resource to review is “Before You Even Start Up Your Startup – Back to Basics.”  This PCG posting provides useful information on how to best focus your energy during your formative stages.

Special Event

Pacific Crest Group is a founding member of the Marin Business Forum. Our next meeting is Thursday, March 24, 2016 from 5 PM to 7 PM in the Drake’s Landing Community Room located at 300 Drakes Landing Road in Greenbrae. Lester Rosen, Esq. will provide a number of real-world case studies where employers stepped on legal landmines that could have been easily avoided with a safe hiring program.  Please go to the Events page to register for this event.

How We Can Help You

PCG provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A Pacific Crest Group professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Three Vital Tenets of a Successful Team

Posted on by Randy Stemmer

Three Vital Tenets of a Successful TeamBusiness leaders must have a razor sharp understanding of how productive their teams are based on the results they are producing.  Leaders are constantly asking themselves what is working and what is not working with regard to our systems and processes?

Three main principles facilitate improving goal-setting, making better decisions about the company’s strategic direction and more effectively inspiring the best performance from their team members.

Clarity

Clarity starts with the team leader and permeates throughout the entire organization.  Does everyone have a solid grasp of the team’s goals?  Ask your team members what are their goals with regard to completing a specific project. How are people performing relative to the achievement of those goals?  Make sure you ask these questions frequently and consistently.

Alignment

Once everyone is clear on the goals, determine whether each goal is aligned or opposed to each other throughout departments and the business as a whole.  Objectives can be misaligned depending on the desired outcome of each goal.  For example, if sales goals surpass the production department’s ability to fulfill the orders timely, customers will get frustrated and may go to a competitor.

Ability

Does the team have the talent it needs to complete its goals on time and on budget?

Team leaders should be strategically surrounding themselves with people who are strong in abilities they are not as proficient in.  The best leaders encourage their team members to work alongside them in achieving high productivity, increased profitability and exceptional company growth.

Pacific Crest Group’s posting “Know Where You are…Know Where You are Going” provides several ideas on the discipline required to lead a team in achieving its goals.  It requires maintaining a certain mindset and consistently performing actions that create a culture where everyone feels empowered, inspired, productive and rewarded in fulfilling the most important and aligned objectives first.

Special Event

PCG is a founding member of the Marin Business Forum. Our next meeting is Thursday, March 24, 2016 from 5 PM to 7 PM in the Drake’s Landing Community Room located at 300 Drakes Landing Road in Greenbrae. Lester Rosen, Esq. will provide a number of real-world case studies where employers stepped on legal landmines that could have been easily avoided with a safe hiring program.  Please go to the Events page to register for this event.

How We Can Help You

Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Pricing Your Products and Services

Posted on by Randy Stemmer

Pricing Your Products and ServicesPrice is only a consideration in the absence of value. One of the most devastating accounting errors made by most companies is pricing their products and services too low. Many businesses break into new markets by under-cutting their competition.  In the short run, they can gain new customers.  However, the marginal cost of each new customer acquired is exorbitant over the long run.  It also brings into question the quality of the company’s products and services by their customers.  Quoting prices below your required profit requirements is not a sustainable strategy.

Faulty Budgets

Another critical accounting error is building budgets based on last year’s performance.  Future success cannot be forecast based on prior performance.  New strategic assumptions must be created that are in alignment with management’s current goals to be successful.  An accurate budget will list all anticipated expenses as well as take into consideration changes in everyday business realities such as seasonal changes in sales volume.

Best Accounting Practices

Pacific Crest Group’s posting “Identifying Best Accounting Practices” highlights several ways your accounting system can be a powerful tool in pricing and budgeting.  It starts with creating consistent and well documented procedures.  Using industry best practices makes the entire process efficient and effective for everyone involved.

Determine risks and weaknesses in your accounting methodology and make a list of ways to improve in those areas.  Make sure there are checks and balances every step of the way.  Listen to your vendors, clients and independent contractors regarding complaints they have about your practices.  This type of feedback is critical in finding omissions, errors and potential fraud.

Frequent Reviews

Review all your accounting policies and procedures at least annually.  The more frequent your reviews the better.  It is imperative that you keep up with new laws, practices and technologies in order to stay competitive.

Special Event

PCG is a founding member of the Marin Business Forum. Our next meeting is Thursday, March 24, 2016 from 5 PM to 7 PM in the Drake’s Landing Community Room located at 300 Drakes Landing Road in Greenbrae. Lester Rosen, Esq. will provide a number of real-world case studies where employers stepped on legal landmines that could have been easily avoided with a safe hiring program.  Please go to the Events page to register for this event.

Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives.  We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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Focusing on Profitability

Posted on by Randy Stemmer

Focusing on ProfitabilityThe primary mission of a business should be long-term, sustained profitability not just revenue growth. “Profitability is a measurement of efficiency.” It is ultimately the deciding factor in the success or failure of a business. It is expressed as a relative not an absolute amount.

Profitability is the ability of a business to produce a return on an investment based on the utilization of its resources in comparison with an alternative investment over a defined period of time. Although a company can realize a profit, this does not necessarily mean the company is profitable.

Revenue versus Profit Growth

Revenue minus expense equals profit. More revenue from sales does not always mean more profit. Revenue is only part of the equation. A business must keep their costs as low as possible to make sure it is maximizing its profits. How do you maximize profits?

The key is to answer some very important questions about your business relative to your industry. Some of these questions are as follows:

What is the state of your industry relative to the overall economy?

How big is your market opportunity and how fast is it emerging?

Is your business privately owned or backed by venture capital?

Is your organization the first supplier in the marketplace?

Does your firm have patents, trademarks or a significant amount of product complexity to protect your market position?

Do you have a competitive advantage in the industry that you can increase overtime?

Sustained Profitability

Many organizations depend on revenue growth to drive the scale of the business. The real determinant of growth is creating long-term profitability through increasingly efficient operations. This point is demonstrated in a Pacific Crest Group (PCG) case study that highlights a “Bay Area Oncology Clinic.” The largest impact in increasing profits reside in the inflection points which exist in the company’s growth curve. In this particular case, PCG found the best course of action was to establish an in-house pharmacy that specializes in new oral medications for cancer patients. These types of drugs are normally only available from specialty pharmacies.

Building a New Business Model

Pacific Crest Group helped establish new partnerships with vendors who distributed these drugs. New agreements were forged with insurance companies to help cover the costs of prescriptions. In the end, profits increased as a result of the new business model, assistance in hiring a new pharmaceutical technician well versed in this area of the business and upgrading their accounting system with performance tracking abilities to provide easy access to data for real-time decision making.

Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward looking perspective, we provide the outsourced solutions that your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all of your business opportunities.

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