Accountants often analyze potential new ventures to increase company revenues and profits. It takes several ingredients to do this work: business savvy, the ability to work with different kinds of people, strong research abilities and critical thinking skills.
Here’s an example.
Joe’s Giant Burgers (JGB), a chain of fast food restaurants, is considering adding a breakfast menu. Right now, all of its locations open at 11 a.m. and serve customers during lunch, afternoon and evening hours.
Adding a breakfast menu would mean opening earlier and paying higher costs for labor and utilities – but doing so could also fatten up revenues from selling more food.
The company’s founder and CEO – aka “Big Joe” – has asked you to calculate whether it would be profitable to add breakfast to the menu.
JGB has already conducted a pilot program – rolling out its gargantuan egg and sausage biscuit, Big Shot espresso and other new menu items – in a few stores, so the company has some data that could be used to project sales, as well as an idea of the various costs involved. But smart accountants know there are other questions the company needs to consider.
To answer these questions, you’d need to have meetings and discussions with JGB executives, franchisees, consultants and employees. Only then could you factor in all of the financial considerations and create new estimated financial statements to present to Big Joe with your recommendations.
Want to know if you’ll be able to kick-start your day with a Big Shot espresso? You’ll have to become an accountant to find out.
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