Determining the actual cost of the services you are offering or the products you are manufacturing lets you make more informed selling and purchase decisions. It may also help you allocate adequate resources to several departments operating in business.

The accounting specialists at Bikham Finance offer cost analysis for you to have a clear understanding of how the business resources are being utilized.

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Our cost analysis services include

  • Variance Analysis
  • Break-even Analysis
  • Contribution Analysis
  • Overhead Analysis

Variance Analysis

You might have set a budget at the start of financial year, but as the results showed up, the outcome did not meet your expectations. These variances in results can inhibit stress in businessman's minds. Variance analysis requires an in-depth analysis to interpret the reasons behind the occurrence of such differences. Meeting your financial commitments and planning the next step can be a tough task.

Bikham Finance has a team of accounting specialists who can help you analyze these variances accurately and rectify them. And this is not just all, they also help you prepare an effective future budget concerning different business requirements. This helps eliminate chances of variance recurrences.

Some of the commonly derived variances are

  • Purchase price Variance.
  • Labor rate Variance.
  • Variable overhead spending Variance.
  • Fixed overhead spending Variance.
  • Selling price Variance.
  • Material yield Variance.
  • Labor efficiency Variance.
  • Variable overhead efficiency Variance.

Our Variance Analysis Services will help you establish full control over cost while keeping the budget numbers in mind. You will get key insights to aid in making prompt and feasible business decisions.

Some benefits of using our variance analysis services are

  • Prompt and successful Identification of changes required in business strategy.
  • Identification of managerial concerns.
  • Managing risks and creating shareholder value.

Bikham Finance keeps you informed of your financial standings and implements strict measures to mitigate risks arising out of such variances.

Break-Even Analysis

It won’t be exaggerating to say that you are in the business to make profits. Of course everyone is. But it is crucial to know the amount it takes to break even financially and keep your business going and start making profits beyond that.

But before you can even try to figure out your break-even point, you need to understand the fixed and variable costs. It is common for business owners to miss out on learning the importance of setting the right pricing model. The pricing of your services or products can actually make or break your bottom line.

You may be selling a great number of services but still not making any fortune, if you are not performing the break-even analysis. More important is to perform it accurately so as to cover all costs associated with the service. But with increased responsibilities, it is difficult for business owners to catch up on this aspect.

Bikham Finance offers excellent break even analysis for business owners to make well informed decisions. The break-even analysis performed by our accounting specialists may help you reduce debt and implement cost cutting measures to fetch you quality services at a lesser price.

Our break even analysis can help you in the following ways

  • Determining the amount of profit that can be generated.
  • Determine the variances formed by fixed and variable costs.
  • Determine changes in profit value with changes in price.
  • Determine the loss in case of a business sales downturn.

Contribution Analysis

As a business owner you are always on a look out for ways to efficiently plan ahead and this can be made possible by leveraging the benefits of contribution analysis. Contribution analysis, if done right, can help you measure the effects of changes in cost and selling prices of the products and services that you offer and take appropriate steps to minimize the damage to your bottom line.

The expert team of accountants at Bikham Finance can help you make well-calculated decisions in this challenging and ever-competitive business environment.

Advantages of making Contribution Analysis

  • Quickly determine the amount of profit you can make on a product or service.
  • Accurate prediction of the number of sales that you can make.
  • Complete business information in hand at no additional cost.

Keeping in mind the numerous business responsibilities that you undertake, making such analysis might become burdensome and tiring for you, especially if you are large business owner. Hiring an in-house accountant to do all this work may be expensive especially when you are looking to build profit.

Outsourcing the contribution analysis services to Bikham Finance will allow you more time on improving relationships with your vendors and customers. While we handle all the analytical work, you can be sure of the profits that your business shall be making.

Overhead Analysis

Expenditure going over and above the expected prime cost of services can disturb your annual budget. Being dynamic in nature, it depends on product or service requirements which can vary with changing demand. Predicting these changes accurately is what important for you to be able to make calculated decisions.

Bikham Finance has a team of business accounting specialists who are well experienced in making overhead analysis and other cost accounting related matters. They take time to classify the overheads over various parameters like behavior of expenditure, nature of expenditure and classification based on business elements and functions.

Overhead analysis is of great importance for businesses. Successful analysis will help you assign adequate resources where they are required. It helps improve service quality to increase profitability and develop cost control by implementing price strategies and prompt decision making skills.

Fixed overhead costs can be more or less constant regardless of the total business outcome. We put great emphasis on controlling variable costs that are monitored on a regular basis.

We at Bikham Finance, can be your one stop shop for outsourcing your overhead analysis services.

Our work strategy

  • Quick analysis for alleviating reasons of high cost expenses.
  • Performing acquisition analysis to understand cost structures.
  • Performing in-depth analysis of the areas where costs remain constant.

We have an extensive experience in helping small, medium and large scale businesses with their cost accounting and overhead analysis.

Need help manage business expenses? Bikham Finance is here to help.

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