Accounting and Finance
Accounting and Finance is also another major area in which a business, small or large, should aspire to capitalize on marginal incremental gains. These gains should be directed towards helping business owners answer two key questions more effectively:
How did my business do this month?
Based on this month’s results how can my business improve financially?
An incremental improvement in the accounting process could be to close out the books or complete the financials one day earlier every month. Other strategies include: calling on delinquent customers more regularly, or implementing additional reports to help management improve and run the sales and operational functions more effectively.
Lastly, reviewing current management reports for enhancements and other improvements will also help a business improve financially over time.
All of these suggestions stated are just a small percentage of what business owners can look to implement in their attempts to induce marginal improvement. The main point to be taken away is that by focusing on marginal gains in every aspect of your business, over time you and your business will become more efficient in the long run.
It’s sometimes hard to stick with practices that yield only marginal improvements because they don’t have an immediate effect. However, when building and sustaining a successful business it’s important to note that it’s not a sprint, it’s a marathon, and by allotting time towards the aggregation of marginal gains you set yourself and business up for longer lasting success.
About the author
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Raffo. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.Website