Understanding Where you are Making & Losing Money

July 7, 2020

The GrowthLab Weekly Jump is an information session hosted every Monday that tackles relevant issues in today’s trying times. Jumpstart your week with practical advice in times of uncertainty.

In case you missed this week’s Jump session, you can find the slide deck & recording below:

This week’s focus is on The GrowthLab Four Deep Dive into #2:

  1. Understanding Where you are Making & Losing Money
    • Understand: Making $$ is more than growing bank balance
    • Design: Systems to deliver customer profitability
    • Implement:Systems & Chart of Accounts to Help
    • Measure: “You can’t manage what you don’t measure.”
  2. Open discussion on PPP Loan Forgiveness Application 

Understanding Where you are Making & Losing Money

  • Understand
    • Making money is much more than watching your checking account grow
    • Knowing and understanding your gross margin contribution – avoiding unprofitable sales
    • 80/20 rule
  • Design
    • Designing a system that gives insight into customer level profitability or product line margins
    • How much time do I spend on billing, collections, & other non-value add drivers?
  • Implement
    • Take advantage of modern data programs (QBO, XERO, Intacct, Netsuite) that can import directly into your FP&A system
    • Set up your Chart of Accounts (COA) around your data reporting & analytics needs (not CPA / tax requirements, etc.)
  • Measure
    • Identify the important ratios and have them updated automatically
    • Review on regular basis weekly or, at minimum, monthly

Jump Start Actions:

  • Get to Know the GrowthLab Four
  • Digest Each of the Four
  • Determine Your Weak Points
About GrowthLab

GrowthLab is your customized team of experienced business and financial professionals who find the right solutions to take your business to the next level.

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Tizra

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Jeff Poole , COO at Fluid Sense

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