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5 Ways to Improve Bottom Line

5 Ways to Improve Your Client’s Bottom Line with BI

Even the most successful businesses often don’t have time to explore all available avenues for boosting their bottom lines. The day-to-day rigmarole can easily eclipse their schedules, leaving them wondering what—if anything—they could do differently. This is where you can use accounting business intelligence software to give your clients unique insights to improve their bottom lines. Here are five ways accounting advisory services can help clients take their bottom line to the next level.

1. Save on Inventory

An accounting dashboard allows you to examine inventory numbers and see how they compare to sales or fluctuate over time and in relation to specific business events. You can then use this data to provide a client with contextual insights they can use to adjust their inventory levels and avoid waste.

For example, if inventory expenditures are incongruent with sales figures, perhaps significantly higher than they should be given the number of goods being sold, this could be a red flag. Business Intelligence enables you to identify this discrepancy and advise your client on how they can best make inventory align with their sales needs.

2. Maximize Employee Efficiency

Using accounting data analytics software, examine the output of employees alongside how much they’re being paid. If output starts to lag pay, you can let your client know and give them a chance to:

  • Discuss the possible reasons with managers and employees
  • Provide additional training, if necessary
  • Make staffing changes or reorganize responsibilities

 

3. Compare Your Client’s Performance with That of the Competition

While it can be difficult to make a 100% accurate apples-to-apples comparison between two organizations, you can often use some basic numbers to assess how a client stacks up against their competitors. The process starts, however, with a business intelligence system. This can surface key data regarding sales and other revenue, net and gross profit, loss figures, and much more. Putting these alongside info you have about your client’s competition—such as what they report publicly for shareholders—can help put their performance into perspective.

Armed with this data, you can then hone in on what your client can do to improve their bottom line to either catch up with their contemporaries or continue their success.

 

4. Predict and Prevent Financial Problems

Most financial issues don’t appear out of thin air; there’s often a trend signaling trouble’s ahead. By using financial performance analytics in an accounting business intelligence solution, you can spot these trends before they wreak havoc on your client’s bottom line.

For instance, if sales are growing but net profits are declining, this could signal excess overhead spending. Identify this using an accounting dashboard to keep your clients a step ahead of potential problems.

 

5. Identify and Duplicate Successful Processes and Products

By studying data associated with a successful product launch, marketing endeavor, or technology implementation, you can make a plan with your client that helps them duplicate those wins. In this way, they will grow and improve bottom line without having to reinvent the wheel, so to speak.

For example, if marketing expenditures were lower than average but revenues were still high, this could be a sign of a more effective campaign. The company might then choose to replicate those strategies and campaigns in the future.

With PathQuest BI, you have the insights you need to give your clients the kind of data that can power bottom line-boosting strategies. With comprehensive data across different systems and convenient, easy-to-read visualizations, it’s easy to present compelling, actionable data. Discover how by booking a demo today.

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