Using your accounting software to increase profits

As the 2016 Xero Accounting Partner of the Year, MHA Carpenter Box have long extolled the benefits of cloud accounting. But there’s more to cloud accounting than simplifying your finances – it’s about streamlining your business to help increase your profits.

The latest cloud solutions available to small and medium-sized businesses are helping owners to focus on what they do best. These new and exciting tools are bringing innovation, increased efficiency and improved profitability to even the smallest business.

Most small business owners who use accounting software quickly master the basics. They are able to automate processes like invoicing and payroll, track expenses and view real-time financial reports to manage cash flow and make better business decisions.

But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Below we cover some smart ways you can use your accounting software to help boost your bottom line.

Gain insights that increase sales

If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.

Most accounting software can highlight your biggest spenders and buying trends. Knowing who your best customers are, your biggest selling products and how much each customer spends impact your marketing decisions. It also helps you to focus and fine-tune your sales strategies.

Similarly, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount and which items to phase out altogether.

Improve customer care and boost profits

Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save. By automating processes like invoicing and payroll, you have more time to follow up with clients and seek out new prospects.

We also know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays? Or thank them when they’ve hit a milestone, such as spending more than £5,000 on your products.

With enhanced customer data at your fingertips, your business will earn a reputation for a personalised service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so upselling becomes easy.

How will you use accounting software to grow your small business?

Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

At MHA Carpenter Box, we know that cloud technology is the way forward for business. The constant evolution and adaptions have opened up a whole new world of innovation for SMEs. Our cloud accounting team has specialist knowledge and can provide a range of services, including system implementation and training.