How do accountants perform price comparisons? Do they use specific methods? Are there special tricks and techniques involved? For many, price comparisons is simply the act of knowing prices and mentally comparing the numbers to determine which one is cheaper. Others may do something slightly more advanced by taking into account a number of factors before making a decision, to find out which option offers the best value.
Accountants are generally more involved in doing calculations, reconciliations, record keeping, and financial statement presentation. They rarely do price comparisons or have any active involvement in making decisions on purchases, equipment acquisitions, or rentals. However, it may be worth discussing how an accountant’s perspective can be helpful for those involved in deciding on purchases or rental agreements.
For accountants, expectedly, things need to be more detailed. It’s important to have more numbers presented according to their relevance in the comparison. For instance, when renting heavy equipment or machinery, lists of features, item attributes, and the rental terms need to be prepared. For a more specific example, consider the case of renting a forklift. There are many things that need to be taken into consideration. Going over forklift rental prices on sites such as http://www.forkliftrentalusa.com is just one part of doing the comparison.
When deciding on which forklifts to rent, an accountant would likely rely on numbers first before going into unquantifiable factors. This means sorting options according to which ones fit the budget. Accountants have enough experience to know that rental forklifts don’t usually have vast differences in quality since they have been used several times in the past. There should hardly be an issue on reliability. Besides, if the rented unit has defects, it’s not that difficult to have it replaced or to get a refund.
The price figures are the key but the following should also be taken into account:
Load Size and Lift Height - This is a basic. Obviously, the forklift to be chosen should be capable of doing what it needs to do. It has to have a tall enough lift for the intended purpose. Likewise, it should be able to carry more load for efficiency.
Terrain Suitability - Will the forklift be used in a paved setting or does it have to go through challenging terrains? This is a very important factor. A forklift that is not suitable for the environment it will be used in can never be a good choice.
Fuel Efficiency - This isn’t easy to determine so this may be used only when deciding between two good options that are very similar. Better fuel efficiency translates to lower costs in operating the rented equipment.
Driver Preference - In cases when the driver has already been designated, it can be great to let the drive decide on which forklift is the best one to get. After all, it’s the driver who knows which units are easier to use and are better in terms of efficiency. Doing this isn’t really based on an accountant’s experience or professional insight but more on common sense and pragmatism.
Of course it’s not necessary to become an accountant to be able to do comparisons the way accountants would likely do. It’s not necessary to be familiar with accounting standards or generally accepted accounting principles to know how to meticulously do rental price comparisons. Knowing and understanding the points mentioned above should suffice.