Sales, Profit, Cash
With Calathea Accounting
These are 3 major numbers that you should be tracking regularly in your business to ensure success.
Sales, Profit, Cash
Sales. Pretty obvious. You need to track your sales as essentially this is where all of your money is going to come from.
You need to know what works and what doesn’t work with your sales. What products or line items bring in the most revenue?
How are these sales generated? You need to track what is bringing those sales in as this will give you valuable insight.
Profit. Let’s break profit down a little…
Gross profit = your overall sales less the direct cost of making those sales i.e. the goods or services related to your sales. It is a measure of your efficiency in generating profit from your sales.
It needs to be high enough to cover your fixed costs.
Net profit = is your bottom line profit figure. Its calculated by subtracting your total business expenses from your gross profit.
Cash. I’m sure you all know what this one is!
Money coming in. Money going out. The difference is the cash left behind.
This is MEGA important. Many profitable businesses have folded because they didn’t have enough cash in the bank.
Ideally, you want enough cash saved in your business to be able to survive the next 3 months without any income.
Cash really is king, treat it like one and guard it with your life!
To see how Katie can help you improve your Sales, Profit and Cash, book a discovery call now
