Aaron Eichler Shares the Top 5 Things Any Company Can Do To Become More Financially Efficient
Financial management is an integral part of running a business and yet many companies aren’t doing nearly enough to maximize profits. Aaron Eichler is a strategic business consultant from Minnetonka, Minnesota, with over twenty-five years of experience. He provides his insight into the top five things any company can do to become more financially efficient.
Determine an Annual Budget
Aaron Eichler claims that one of the top steps any company can take to become financially efficient is to determine an annual budget and stick to it as much as possible. Eichler acknowledges that of course, things come up and it is nearly impossible to stick to a budget exactly. However, having an annual budget to refer to as a guide will enable you to make better, more financially sound business decisions. Further, the process of determining your budget will allow you to gain a clearer picture of your company’s financial standings each year. Ideally, leaders should be assessing their finances more regularly than once per year, but it’s a good starting point to have. When determining the budget, consider factors like your current financial position, where you want the company to be in one year’s time, and what your priorities should be to get there. Having a rough idea of what lies ahead for your company, financially, will help you stay on track and not go way over budget.
Automate Bill Payments
All business owners know that keeping track of payments is not only a huge pain, it’s also a near impossible task for one person. Especially as a business grows, the amount of payments to all sorts of different people and companies can get a bit out of control. That is why Aaron Eichler of Minnetonka, Minnesota, always advises companies to automate their bill payments. This hands-off approach will not only save you time, but will ensure that your bills always get paid on time, which in turn, also saves you money (no more accumulated interest or overdue fees). From credit card payments to utility bills and rent checks, set up everything so that the money automatically flows from your online bank account to the correct recipient each month. Of course, if you do decide to automate bill payments, just make sure you always have enough funds in your account.
Third, Aaron Eichler says that another way to become more financially efficient is to make your business paper-free. This not only has huge environmental benefits, but it will make it much easier to keep track of documents, including financial documents. In 2020, no one wants to be rifling through a desk full of papers, receipts, and financial statements. Make it easier on yourself and your staff by utilizing the incredible cloud-based tools that are out there and go paperless. This method is more organized and will ensure that nothing gets lost, as you will have a backup for all important documents and data. There are also plenty of online accounting and invoicing tools nowadays that make keeping track of your financial statements significantly easier. Not only will you know who owes you money and who you owe money to with the click of a button, but it will make filing your taxes a much simpler process.
Get Help from a Professional
When all else fails, the best thing a company can do to become more financially efficient is to get help from a professional. According to Aaron Eichler, this means hiring a business consultant, ideally with strong financial and accounting skills. Whether you wish to hire an in-house accountant who works for you full-time or want to hire a part-time financial consultant from a third-party firm, it’s never a bad idea to seek help from a professional. In many cases, business owners don’t have a strong background in the financial side of running a business, such as invoicing, bookkeeping, or accounting. If you acknowledge that this isn’t your strong suit, then hiring a professional is a definite must. This expert will assess your finances, give you a clearer financial picture, and can help you stay on track to ensure you’re never putting your company at risk of financial turmoil.
Regularly Review Your Supply Chain
Aaron Eichler claims that more often than not, companies set up a supply chain, get comfortable with it, and never look back. If you’re getting everything you want out of your existing supply chain, including a quality product, solid customer service, and value for your money, then that’s great. But for many companies, they aren’t getting this much satisfaction out of their supply chain but feel it would be too much work to make change. This is a mistake, especially when it comes to your company’s finances. Aaron Eichler always recommends taking the time to question and assess your existing relationships. Shop around and get a feel for what other companies are offering for the same or maybe even a lower price. Alternatively, if you wish to stay with your existing companies, consider negotiating the terms of your contracts to make them more favorable for your company.