Mary runs a small beauty salon in east London with a small team, offering first class hair, beauty, grooming and aesthetic treatments . As the business started to grow, Mary had neglected the financial aspect of her business and found that although sales were increasing, profitability was not.
At her year-end accounts sign-off meeting, it was clear from a discussion around a three-year business performance review for Mary’s operations that she was making bad decisions around pricing because she did not have access to meaningful numbers to help her with those decisions.
As a result of that discussion, Mary agreed to move onto a cloud accounting solution. Once set up and configured, she was then able to quickly reconcile all of her bank transactions every morning, see what was in the bank and what was due to come in and go out and also track important gross profit margins for her main products and services. In turn, we are able to keep an eye on those numbers with our accountants’ access to the live accounting file and be alerted when anything goes off track so that we can send Mary a note if need be.
Mary now feels in control of her business and as a result of having timely and accurate information, she has been able to adjust prices so that she makes the margins she needs to achieve her profitability goals. Interestingly, as a result of increasing her prices, her team has become even more focused on creating value for clients, resulting in a true win-win situation.
If you feel moving to a cloud accounting solution could be helpful for your business, contact us at the link below and we’ll be in touch to discuss how we can help.