Your P&L shouldn’t be viewed as just a monthly, paper exercise. It’s like an x-ray of your business, showing up the weak spots and the bits that are in good health. So, if you only give it a quick glance when it lands in your inbox each month, you could be missing some valuable management information.
Where does the money seem to disappear? By contrast, which are your stars? Which revenue lines are beating your expectations? Could they be doing even better? Have you considered how capitalising on new communications might help?
Set benchmarks or baselines to understand performance.
Limitless technology stress the importance of continuously monitoring your P&L. “If not performed diligently, the result will most likely be data that is skewed, resulting in a misrepresentation of actual business trends. Set a time and date every day or week to review.”
And how do I know if your income or expenses are in-line with the industry? If you do not have a baseline, theoretical or real, it is VERY difficult to know where you stand.
“In some P&L cases the ‘buckets’ of income or expenses are too large and do not effectively capture real data. The smaller the bucket, the more effectively you can analyse it.” Limitless Technology.
For example, under IT Services, you may find Telecoms. This may include items such as data, internet, local calls, international calls, conferencing and much more. Here lie massive opportunities for savings and improved business performance by leveraging technology more effectively.
Look to the cloud to improve performance
If we stay with the Telecoms example, consider the advantages a Cloud Telephony service, with predictable per user per month cost model, would have on your P&L.
A traditional on-premise phone system has a large upfront hardware cost. It must be installed by an engineer (at a cost), and if your business expands…. You guessed it, more hardware and licencing costs. If something went wrong, you’d be without a phone system until an engineer came out to fix it (again, at a cost). And if you moved premises, your back at square one.
Now take a hosted phone system. Firstly, because you pay per user per month it makes it easy to scale up and down to your needs, and there’s no hardware to worry about if you move premises, or damage occurs to your building.
You also don’t need to worry about maintaining or upgrading the phone system. Because it’s in the cloud you always have access to the latest technology. And easier online management of call routing can help to reduce call costs, drive efficiencies and improve service.
Cloud Telephony also gives you access to loads of other great features that help your business to work better by streamlining processes.
- Call reporting can help you better understand your business, where your bottle necks are and how to make improvements.
- Call recording to ensure MiFIDII complicacy.
- Mobile applications to support an agile workforce on the move with call, conference and instant chat features.
- CRM integration enabling you to better serve your clients and improve productivity.
- Centralised reception, centralising call handling allows you to centralise your reception function over multiple sites – this kind of efficiency and really drive long term cost savings.
That’s just to name a few! And all at a predictable monthly cost.
Are your processes and systems as efficient as they can be? Are you capitalising on new technology to save time, travel and costs? Could you do more with less?
The first step in analysing your systems and processes to understand if you’re getting the most out of them. One of our clients, an accountancy firm, benefited from all the following after changing to a Cloud Telephony phone system.
- Improved staff productivity and accuracy of billed time, thanks to daily MI reports.
- Better decision making on staffing levels and expansion, thanks to sophisticated reporting systems.
- Better client service, by keeping communication active and enquiries incoming, even in a disaster recovery scenario, thanks to completely flexible routing of calls.
- Improved missed call rates, customer service and visibility between sites, thanks to an online system showing availability.
- Improved marketing planning, thanks to accurate tracking of current campaigns.
Read the full case study here.
To consider other practical ways to improve your P&L why not download our guide The Top 6 communication changes Managing Directors can make to improve their P&L. And if you’d like to find out more about how VOIP could make a crucial difference, we ‘d be happy to come and explain more.