Profitability is driven by productivity: how productive is your business?

In simple terms, a productive business is one where the output by its resources exceeds the input by those resources. When it comes to production, this equation is a measure of a business’ efficiency which is why owners of companies need to understand and measure it. An unproductive small business has a very short life-span.

As a business owner, productivity should be a key metric that you are using to understand whether or not the way you provide your goods and services to clients is the most profitable way. Profit is the key metric in which a person measures productivity.

Essentially, as your business productivity increases a company should see higher profits. In addition to that, resources which may have presented a pure cost centre to your bottom line should actually turn into revenue, because every resource you invest in as a business owner should at the end of the day do one of two things – make you money or save you money.

For small businesses, finding a way to minimise overheads when it comes to resources is crucial. A great way to do that is by making some investments in online tools that assist your staff in completing tasks across areas of the business like marketing, sales, customer service and of course accounting and finance.

Products like Receipt Bank help small businesses and their accountants to keep on top of their bookkeeping effortlessly, significantly cutting down the time spent going back and forth between business owners, bookkeepers and accountants.

Founder Michael Wood was, like you, a small business owner who began the company in 2010 after he realised that the lack of efficiency and productivity in his own business, when it came to the financial side of things, was causing him to lose money. At the time he went to a company called ReceiptFarm to help him solve the problem; to a certain extent it did – however Wood wanted to take it a couple of steps further – so he ended up buying the company, adding those extra features he wanted and renaming it Receipt Bank.

http://info.receipt-bank.com/small-business-au

Wood’s mission with the company is to make small businesses more productive, which in turn makes them more profitable. Technology is one of the easiest ways to cut down time spent on completing tasks in the workplace and therefore increasing the output of each of your employees.

Receipt Bank can solve those financial ‘headaches’ for you, and here are some additional productivity tools you may wish to have a look at as potential platforms that can assist with other time consuming office tasks.

Email Marketing – Campaignmonitor.com

Sales CRM System – Pipedrive.com

Marketing Activities – Autopilothq.com

Project Management – Asana

Document Management – Dropbox Business

There is also a large variety of tools and information located at Business.gov.au for the Australian small business owner to take advantage of.

This content was brought to you by Receipt Bank. World leading software that automates your bookkeeping. To discover more or sign up for a free trial of the product please click here.