Economic growth in Q1, but protect your bottom line

You might have seen the suggestions by The Confederation of British Industry (CBI) indicating that the UK economy will grow in the first quarter of 2012- albeit marginally. This can only offer some light relief for many businesses who are currently looking for stability and positive news in such a changing economy. The organisation expects 0.9% GDP growth in 2012.

Businesses should ensure that they are as suitably prepared as possible for the year ahead and keep one eye on the bottom line. Making sure that you maintain a focus on billable hours and profitability is one way to protect this. Many firms believe in ‘people ROI’ – working out how profitable each person will be to the company to decide their pricing strategy and manage resources. Using only this method, without the right supporting software, can make it hard to spot opportunities to increase profitability.  The right software can tell you how employees are working and how clients are using their employee’s time. This will help you understand where time is being spent and better manage resource so that you can seize on opportunities to improve your bottom line.

Accounting firms should look at their level of billable hours and whether they have enough insight into where their time is being spent.

 

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As the saying goes, knowledge equals power. But knowledge can also equal profit, as informed decision making and real time business insights give Accounting firm Partners the ability and empowerment to shape their business success. In this blog series Chris Duddridge, Business Director at Deltek, a global software company with a track record of helping Accounting firms improve their bottom line, shares his experiences of guiding clients to improve visibility of their operations, reduce administrative costs and ultimately, run a more profitable business.

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