Do You Need Profit Improvement For Your Business – Post 2
Would you like to increase your business’s profit? If your answer to the question is YES, then read on.
As mentioned in my previous post there are several big-ticket items that can be included in your Profit Improvement Plan, the implementation of which can have an immediate impact and positively increase your business’s profit.
This is the second in a series of posts covering the big-ticket items that can help make the difference and boost your business’s bottom line:
Segmentation Accounting
Segmentation Accounting is a method that enables identification of business gross profit by product type, service type, or even by division or department – at a glance! It allows you to make informed decisions on both the performing and non-performing segments of your business.
You would be surprised by the number of businesses across the board – from small concerns to large corporates – who do not realise:
- How a change in their product-mix can significantly impact on their gross margins.
- What gross margin in either percentage or dollar terms each product / service line or division / department is making.
- How much extra income, if any, they are making from loss leaders.
- The true value of rework.
- That a small percentage of rework can sometimes be more profitable than no rework at all.
Powerful, isn’t it? So, here’s a question for the smaller businesses out there: Did you know that you can do segmentation accounting in Xero or any other small accounting system?
Easier said than done? Not when you involve Into The Blue NZ Limited. We are not only experts in segmentation accounting but can also identify significant profit improvements from segmentation accounting analysis that can be included in your Profit Improvement Plans.
And we’re not afraid to put our money where our mouth is because, if you engage us, Into the Blue offers most mature businesses a Zero-Risk policy… No Improvement – No Fees.
For more information please either reply to this post or email profit@intotheblue.co.nz
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
