Marketing is the many paths and roads that lead to your building—the way your building is introduced to the world and the way your clients come to you.
Accounting is the foundation of your building. Regardless of your philanthropic or capitalistic goals, you need to manage the flow of money in and out of your business. Proper management of this cash flow ensures that your foundation will be strong and the building of your business will last for a long and prosperous time.
A solid foundation begins with bookkeeping. Proper bookkeeping is crucial to the health of a business, especially bookkeeping in Salt Lake City. The accuracy of your bookkeeping is best measured by the number of hours your accountant has to take to clean up your financials for your tax filing.
Naturally, accurate bookkeeping will save you time and money because your accountant will not have to spend as much time or charge you as much money if your bookkeeping is accurate. This makes your foundation solid, but in order to expand your building and your income, you also need to expand your foundation.
Expanding your foundation requires more than accurate bookkeeping. Money is made in two ways increasing sales and reducing costs by improving your efficiency. Increasing sales comes from improving your marketing and sales and would relate more to the paths leading to your building. To expand your foundation, you must improve your efficiency and to improve your efficiency you must track your operations and flow of money through frequent reporting and analysis.
This process of creating reports and analyzing the data to find ways to improve your efficiency and create more profit for your company is called Managerial Accounting.
Managerial Accounting is the heart and soul of a successful business. If a business is not constantly increasing the foundation by improving efficiency, the foundation will crack and shrink and eventually cause the business to fail. You can improve by trial and error or by analyzing reports to find areas of improvement, but the choice is ultimately yours as the owner and manager of the business.
As I like to tell the Salt Lake City business owners I work with, each potential client is carrying two bags of money. The first bag of money you will receive when you make the sale. The second bag of money you can only receive as you improve the efficiency of your business. Foundation can help you receive that second bag of money from your clients.