Increase your business profits by knowing your break-even point
Is your business breaking even? Did you know that 95 percent of all new businesses fail in the first five years? The reason most of these fail is due to accounting issues. Business owners want and need to know how much revenue they need to bring in each month in order to pay their bills. One of your most important tools to help you with this is the Break-Even Report. With my clients, I’ve found that the right reports give them the info they need to make the right changes to make their businesses run better and increase their profits in the process. A break-even point tells where you become profitable. The calculation to do this is Break Even = (Fixed Expenses + Discretionary Expenses) ÷ Gross Profit Percent.
A good bookkeeper can save companies more money than they cost. The cost is really pennies on the dollar. Through the break-even analysis, I personally helped a business increase its sales by almost 25 percent as well as lower its costs. A good bookkeeper can do the same for you.
You can go to my website to calculate your break even at www.GraniteBookkeeping.com. First, print a one-year Profit and Loss Statement. If you have fixed Owner Draws, add them to your Fixed Expenses. On my website, click on the Calculation link or go to the Calculation page. If you have any questions, please feel free to contact me at Robyn@GraniteBookkeeping.com. Happy increased profits!