Your bottom line, or your net income, is considered the most relevant way to determine a company's profitability. This figures encompasses all of your expenses and revenue for a given time period and in order to increase your net income, you can either increase the revenue or decrease your expenses. Here are some tips:
- Either raise prices or reduce them and bring in more clients
- Offer additional services/products
- Increase your sales team's goals through incentives
- Increase your footprint
If you can target ways to save money through looking for less expensive products, decreasing rent or office supplies and if necessary, decreasing your staffing.
Knowing what impacts your bottom line is necessary to efficiently and effectively run your business. Knowing what can reduce your bottom line is just as important as knowing what can increase it.
Why do I need a CFO?
You didn't start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.