While sales are of course a great way to make a business more profitable, if you’re not able to keep hold of the money generated from those sales, you might not see much of a boost to your bottom line. 

For profits that are more valuable and easier to sustain, an efficient business with fewer expenses is necessary. 

To help make your business more profitable in 2024, here are 5 practical tips to try:

1. Put efficiency at the top of your agenda

Time wasted is money wasted, and if your business is experiencing any inefficiencies in the way it operates, you could be struggling to make any kind of profit. 

Try automating certain tasks to help save time, such as monthly invoicing, payment reminders and recurring bill payments. Reducing time wasted wherever possible means that your team, and your business, can focus on making money instead of wasting it. 

2. Invest in cloud accounting software

With the ability to access your financial data in real-time whenever you want, and from wherever you are, cloud accounting software has transformed the way many businesses operate. A lot of time can be saved on updating excel spreadsheets manually every month, and businesses have the opportunity to make more informed financial decisions based upon financial figures that are always up-to-date. 

3. Evaluate your pricing model

While there is always a need to offer prices that are tempting to customers and which will make them choose your company over another offering similar products or services, pricing that’s too low will never see you turn a sustainable profit. So, while pricing that’s too high could scare away customers, pricing that’s too low might make you popular among your clientele, but your business may never be profitable. 

Carry out plenty of market research to ensure your pricing is giving customers what they want, while allowing you to be profitable. 

4. Outsource

Startups and small business owners in particular, often have just one or two people at the helm while the business is in its early stages. But wearing multiple hats doesn’t always save small businesses money, in fact, it can sometimes cost them dearly. Lack of specific knowledge about taxes or accounting, for example, can see a business owner make erroneous mistakes that don’t just waste time and valuable resources, but which also waste money, such as in the form of missed deductions or fees for tax filing errors. 

Outsourcing CPA work to professionals who are capable of keeping on top of your finances and helping you make decisions for the benefit of your business, could help you turn a profit, while enabling you to focus on other aspects of the business that are more within your skillset. 

5. Make customer payments simpler

With the help of certain cloud accounting tools, your business can streamline digital payments and help guarantee profitability on a more sustainable scale. Gone are the days of waiting for weeks after a service or product has been delivered to get paid; forcing you to suffer with a cashflow deficit. 

Review how your customers pay you, and make sure that not only is the process simple and secure, but that it’s easy for you to get your hands on the money. 

Bringing more money into your business is a great thing to strive for, but sometimes it’s how you hold onto that money and manage it, that makes your business more profitable and successful overall. From outsourcing and tweaking your operational processes, to taking advantage of new technology, there are plenty of ways to make 2024 your businesses most profitable yet.