Why do business owners only focus on the top line revenues?
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That is exactly why many businesses fail. Looking at that one line doesn't give you any understanding of your business. You could be making more then the month before but your product or payroll cost were much higher thus depleting that income difference. That is exactly what my job gives the business person the correct financials to look at and see exactly how they are doing . Are you really profitable? Look at all the numbers. Give me a call I can help.
1 Reply
Business from Windsor Mill, MD
Agree 100%, Sheryl. I'm also a proponent of Activity-Based Costing, which can provide profitability insights not normally revealed by traditional financial statements. The challenge is convincing small business owners that there is great value in financial analysis.