Business profit isn’t the same thing as business value. You can have a profitable business but the business might not have value to an outside evaluator if it has issues like owner dependency or customer concentration.

Today, we will be discussing a few simple but effective steps to protect your business’s existing value and improve for a greater value.

1. Financial Recording and Reporting Automation:

The financial management world has increasingly relied on AI (artificial intelligence) to perform routine and repetitive financial recording and reporting tasks. This has significantly increased efficiency and reduced manual data entry errors. Because of the improved accuracy and real-time report readiness, business owners can rely on better quality data to make better decisions.

Let’s take QuickBooks Online (QBO) as an example. It allows businesses to set up automatic bookkeeping tasks, such as cash inflows, and outflows, as well as all the payroll tasks. QBO can be set up to provide you with daily reports or allows you to run various types of reports anytime, anywhere.

This automation means that organizations can cut costs on hiring bookkeepers or accountants to manage transactions. They can instead invest money in strategic planning, growth and value acceleration, and other long-term value-adding activities.

• Process Development and Documentation:

Whether it’s the marketing process or customer service process, standardizing processes and procedures can make the organization more efficient and reduce dependence on the founder or other key employees. This means that if anything unexpected happens to the executive or key employees, the organization can still go on as new people can simply follow the process and procedure and continue to serve their customers.

Perfecting processes and procedures can help lead to better organizational growth and expansion. As there’s a road map, each new hire can master their tasks quickly, which results in the organization being able to serve more people and improve their impact on the communities.

No need to worry if businesses don’t have the expertise to document the process development. This task can be outsourced to an expert consultant. Once the consultant helps the organization set up the framework. The internal staff can simply update it to help perfect the system and process.

•  Budget Development and Monitoring

Some businesses hesitate to use a budget as a guidepost. It can be a quite useful tool to give you peace of mind and provide you with a level of accountability for your business operation.

QBO has a simple budgeting tool. It allows you to use past data as a starting point and make adjustments for projections. If you don’t have any data to start, it provides templates for your brand new budget.

With a budget in place, you can run the budget-to-actual analysis, which helps you see how well you are running the organization, and any strengths and weaknesses.

If small and mid-sized businesses implement these 3 simple steps, they will see growth in impact and financial stability.