🇺🇸 Declare Your Financial Independence 🇺🇸
This Fourth of July, the country marks 250 years of American independence. As the nation celebrates a milestone two and a half centuries in the making, it's a fitting moment to think about the independence of your own business. Strong, reliable numbers are what give owners the freedom to make confident decisions and steer their own course. What's one thing you could do this month to build that kind of financial independence?
Hopefully one of the tactics below points you in the right direction. Pick the one that would have the biggest impact right now and commit to it. Some you can knock out this month, others may take longer and need your whole team. The point is to always have one improvement in the works.
If nothing below resonates but something else is on your mind, reach out. That's what we're here for.
In this month's edition, we have tactics from our Be More Profitable, Collect Cash Faster, Manage Costs Effectively, and Leverage Accounting Strategically playbooks. Our playbooks are designed to support our P-R-O-F-I-T approach to outsourced accounting.
🏆 Strategic Partner Highlight 🏆
Shaaya Sharifi
Founder | Isle Ventures
Two companies with the same EBITDA can sell for dramatically different prices. He helps founders understand why.
By looking at a business through the combined lens of a buyer, investor, and operator, he cuts through the complexity to identify the exact levers that create meaningful enterprise value. Whether the ultimate goal is growth, succession, or a future exit, he helps owners build companies that thrive beyond their daily involvement. Connect with him at [email protected].
🎯 This Month’s Tactics 🎯
Convert Fixed Costs to Variable
Do you think in terms of fixed versus variable costs? You should. Favoring variable vendor agreements can reduce risk when times get tough or growth accelerates.
Automate Invoicing and Reminders
Most accounting systems offer automated email invoice reminders. Are you using them to help ensure timely payment?
Link Commissions to Collections
Improve cash flow by tying commission payouts to customer payments. Pay commissions only after the related invoice has been collected.
Track Your Effective Hourly Rate
Track effective hourly rate monthly by role. If utilization rises but EHR stays flat, low-value work may be filling the calendar. Aim to beat $100 per hour for healthy profitability.
That’s it for this month.
Short and sweet.⚡🎯
Just quick tips and tactics that help you build a stronger business.
Learn more about Basis 365 Accounting and our tactical playbooks developed from our P-R-O-F-I-T approach™.
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