A company’s Chief Financial Officer (CFO) has the responsibility of guiding the business toward financial success. From auditing their software spend to using a treasury as a service software, CFOs can maximize profits in 2022 and beyond with these strategies.
1. Use cashback business credit cards
Cashback business credit cards provide CFOs with the opportunity to redeem a percentage of their purchase through a cashback program. Getting cash back allows businesses to recoup money from their professional expenses. Most credit card companies offer a cashback rate between 1.5% and 5%, which can quickly add up depending on the amount a business spends. The cash earned goes directly back into a company’s bottom line without any extra effort.
2. Audit software use and spend
CFOs can use auditing software and subscriptions to maximize their profits while reducing overhead costs. An internal audit allows a business to see how they're spending their finances and update their goals. Using the information from an audit, a business can monitor its efficiency, improve its spending, and examine its operational process.
3. Lower internal costs
Lowering internal costs helps businesses increase their profit margins and maximize their profitability. One way to minimize costs is reducing the amount a business spends on core utilities. Businesses can reduce their energy, water, waste and recycling, and broadband expenses by limiting the usage of these utilities and, in some cases, switching suppliers.
CFOs should also talk to their business’s vendors to negotiate a fair price. If a business has been a loyal customer for years, a vendor may be more inclined to re-negotiate a price or offer extra incentives for working with them. If a vendor is unwilling or unable to offer any discounts, CFOs should research new vendors and explore other options.
4. Practice smart inventory management
Properly managing inventory allows businesses to know how much stock of a product they have and how well it is selling. By maintaining proper stock levels, CFOs have a better idea of how much money they should be spending on storage fees. Monitoring inventory also provides insights into consumer behavior. If one product is selling particularly well, business owners can maximize its success by marketing it more, increasing its price, or investing in similar products.
5. Foster existing client relationships
Countless studies and real-world experiences of business owners show that it’s significantly less expensive to keep your existing customers than it is to acquire new ones. In fact, an often-cited report by Bain & Company says that improving customer retention rates by just 5% can boost a company’s profits by 25% or more, because repeat customers tend to buy more from a business over time.
Prioritizing existing clients and focusing on renewing and expanding their contracts can be an effective way to raise profits while saving money and time on cold sales outreach to new prospects. This can be done through a variety of tactics, including special incentives and pricing, referral programs, or even a simple client appreciation campaign that targets the most loyal buyers.
6. Use a treasury as a service software
Treasury as a service (TaaS) software automates a company’s financial operations, such as its cash flow, assets, and investments. TaaS systems such as Treasure can track a company's ability to convert its assets into cash flow. CFOs can use this information to forecast industry trends and automate their cash management process in order to meet their company’s goals.
Using Treasure gives CFOs the ability to save their company money, as well as invest it so they have money to reach future goals. Request a demo today to learn how Treasure can enhance your cash flow and help you achieve your financial ambitions.