Accounting Software Can Help Your Business

A lot of business owners measure their success by one metric alone: profit. The trouble with this approach is that it only provides a limited way of gauging business growth. Fortunately, simple accounting software can help determine other factors like the cost of customer acquisition.

You can compute for this metric by just simply dividing all your marketing and advertising expenses in a month by the number of new customers that you gained. Armed with this information, you can figure out how much money went into gaining every new customer. Your goal in the long run is to keep your expenses and your customer acquisition high.

Say, for example, that you spent a total of $900 on your advertising and you were able to get 15 new customers out of it. That means you spent a total of $60 to earn one new customer. Your long-term goal should then be to decrease your advertising costs and gain more customers. In a year or two, you should aim to get around 25 new customers from an advertising budget of $800. If after three years, you are still spending $60 per customer, then you’ll need to reconsider your marketing tactics.

To compute for this simple but highly effective metric and more, you will need the aid of reliable accounts software. With such knowledge at hand, you can determine how your business should grow.