Many customers, little profit: how financial management impacts professionals and business

It is common for self-employed professionals and entrepreneurs to get excited when seeing the full agenda or long lines of customers waiting for service. However, according to Sebrae, about 30% of micro and small companies with high sales volume still suffer from tight margins, precisely because of the lack of robust financial control.What at first glance seems successful may, in practice, not convert into enough profit to maintain the sustainability of the business.

“There is a confusion between billing and profitability. In many cases, the professional ends the month exhausted, but without seeing this effort reflected in the bank balance”, explains accountant Danilo Fermino, Flow Accounting. He points out that fixed expenses and variables such as taxes, charges and inputs (devour much of the revenue, and the entrepreneur ends up not knowing how to price correctly, which generates imbalance in the accounts.

This scenario affects workers from various areas, such as retailers, consultants and service providers in general. The situation can be aggravated by the lack of prior planning and careful analysis of these variable and fixed costs.“A solution is to organize through cash flow reports, setting profit margin goals and renegotiation with” suppliers, says Fermino.

In the specific case of dentists, the difficulty is accentuated. Many graduates leave the universities completely fit in the technical part, but without any preparation in administration of clinics or offices. At this time, Flow Accounting enters to guide financial management, helping to price treatments, manage inputs, keep taxes up to date and, above all, ensure that all clinical effort becomes a real result. “Our focus is on turning these professionals into true dentistry entrepreneurs, so that they are not hostage to the excess hours worked with little remuneration”, says Danilo.

According to a survey by the Federal Council of Dentistry, Brazil now has more than 350 thousand dentists.Many of them face the routine of crowded offices, but accumulate physical and financial wear for not having a proper planning and accounting monitoring. Fermino points out that the same goes for other sectors: managing well the inflows and outflows of resources is the only way to, in fact, improve profitability.

Thus, the main lesson is clear: as important as attracting customers is to understand how each sale impacts the health of the business. Investing in specialized accounting consulting, such as that offered by Flow Accounting, can be the decisive factor to convert the intense movement into concrete results. After all, every professional effort deserves to be well rewarded & this only happens when financial management becomes a priority.