9 Profitable Ways Accountants Can Boost Their Business Using Cost Benefit
Analysis

Author: Bruce Hokin

Accountants are well suited to making extra income by using Cost Benefit Analysis.
The 9 ways shown in the article will make it easy to add these elements to your
business. Cost Benefit Analysis can assist your clients and boost your profit.

When dealing with decisions using Cost Benefit techniques it is very important
to follow the proven principles. The health of your company and your reputation
depend on it. If these rules are not followed then your decisions could be flawed.

Let's start, shall we?

Profitable Way 1. Making Better Asset Purchase Decisions for Your Company

Cost Benefit Analysis is very useful when deciding between competing financial
outcomes. Do we purchase this new asset or that one? Do we proceed with this
investment in new technology or continue as normal? Is it time to replace an
ageing asset yet, or should it be kept longer?

Profitable Way 2. Making Better Asset Purchase Recommendations for Your Clients.

All the comments above relate just as much to you as to your clients- even
more so, since there may be repercussions if your recommendations are flawed.

Think of the benefits to the business if you can show your clients a proven
easy-to-understand system used by many governments and large corporations world-wide
for making better financial decisions.

This methodology will withstand external scrutiny - it has done so many times
in the past.

Profitable Way 3. Consulting to Clients on How to Spend their Scarce Investment
Capital on Competing Projects.

Cost Benefit Analysis is very useful in ranking projects based on their Benefit
Cost Ratio results. The project with the highest Benefit Cost Ratio should be
authorised first since it will increase the company's value the most (all other
things being equal).

Profitable Way 4. Audit Client's Cost Benefit Methodology.

Another separate opportunity is for you to offer to “audit” your
clients' project development plans and spreadsheets for mathematical correctness
as well as the validity and strength of their assumptions.

Large companies will appreciate an objective review of their project methodology.
It can add weight to their funding applications also.

Profitable Way 5. Offer These Services to Charities

Not-for-Profits and Charities need to show their stakeholders/shareholders
that their financial decisions are based on proven principles. They may not
have sufficient spare funds to undertake this analysis themselves. However,
you could offer to audit and consult in the area of Cost Benefit Analysis, gratis,
in return for some acknowledgement in their Annual Reports.

Profitable Way 6. Implement this Method Across Client Companies

Once you learn the principles of Cost Benefit Analysis you will appreciate
that most companies would benefit from an “across the board” implementation
of this method. This could mean extensive training and developing an implementation
strategy. More business opportunities for you.

Profitable Way 7. Training in Cost Benefit Analysis

Running training programs in Cost Benefit Analysis for many invited clients
can lead to further business, both in implementation and other consulting work.

Profitable Way 8. Advertise Cost Benefit Analysis Services in Newsletters and
Client Correspondence.

This service can help in setting your company apart from your competitors.
Why not advertise this expertise in your newspaper advertisements?

Profitable Way 9. Offer to Prepare Cost Benefit Analyses for Client Funding
Proposals.

Cost Benefit Analysis is a powerful tool that can clearly show the benefits
contained in the new proposal compared to the “do nothing” or other
competing options. It can also show how soon the project will move from a net
cost to net benefit position. Other measures of payback can still be included
for reference purposes such as Payback, Internal Rate of Return and Present
Value. It clearly shows the benefits received for each $ of cost expended

About Author

Bruce Hokin is an experienced accountant (FCPA). His main interests are in better
decision-making and Cost Benefit Analysis training. You can find more in-depth
FREE articles, a FREE Newsletter and FREE e-zines at his website. Also, you
can quickly learn how to use Cost Benefit Analysis by signing up to his "5
Steps to Cost Benefit Mastery" e-course. You can be using this powerful
technique in under 2 hours! All these benefits can be found at his website.
http://www.thecostbenefitcoach.com

Article Source: http://www.1888articles.com/author-bruce-hokin-1963.html