This week Dan & Steve talk about a few updates and commonly asked questions on the PPP Loan Forgiveness Application. They then dove into the number 2 of the GL Four... "Know Where You Make & Lose 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
