How understanding profitability by client will maximize your efforts.
Your profit margins represent the overall health of your business. More detailed profit and loss data illuminates the particulars of what makes your business successful and where you could improve. Want to know how profitable a given client is? How much money do you make on each product or service you offer? You can know quickly with a categorized profit and loss statement.
Let your processes do the work for you.
An easily-categorized profit and loss statement requires careful set up, but will save you time in the long run. Automate reporting processes related to purchasing, billing, payroll, and anything that has to do with money coming in or going out. Sync all your reporting systems such as point-of-sale and expense reports to tell QuickBooks what clients, projects, products, and/or services those transactions relate to. Prioritize categories that matter to you. Your accounting software may already feature basic categories, automatically filtering transactions with default tags. Choose custom tags that relate directly to your business.
Categorized statements create actionable data.
A well-designed profit and loss statement is a financial database that enables quick, effective decision making. Businesses that offer a variety of services and products can clearly see what’s working and what isn’t, and adjust their approach accordingly.
Create a profit and loss statement that is searchable, readable, and accurate thanks to thorough reporting processes and categories that make sense. When my clients need to make decisions, they can do so quickly and confidently thanks to a complete understanding of their cash inflows and outflows. The information is already available to you. You just have to learn how to capture it and utilize it to its fullest potential.
My firm, Advantage Insights, offers remote financial management services designed to provide valuable financial awareness. No matter how thorough your records are now, I can show you how to develop a comprehensive process for recording, tracking, and projecting financial performance in all areas of your business. Visit youradvantageinsights.com or call 402-281-3785 to schedule a free consultation to learn more about maximizing your effort through financial awareness.