Podcasts about goods sold

281 - Pricing your photography services shouldn't feel like a guessing game! But if you've ever wondered why your bank account doesn't reflect your hard work, it might be time to look at your cost of goods sold (COGS). In this episode, we're breaking down what COGS really means for your photography business and how to price your products profitably—without the overwhelm.What to Listen For:The real definition of cost of goods sold (COGS) and why it's not what you think.Why photographers often underestimate their true costs.How to calculate your COGS per session to ensure profitability.The industry standard percentage for COGS and why you should stay below it.The difference between general expenses and cost of goods sold.How home-based and retail studio pricing models compare.Why albums should be priced 10x their cost.The biggest mistake photographers make when pricing prints.How selling single prints and digital files can hurt your profit margins.The one thing you should do right now to check your pricing health.Understanding your cost of goods sold is the key to running a profitable photography business—whether you're part-time, full-time, or growing to the next level. Now, it's time to put this into action!

In this special episode of The Good Food CFO podcast, we're sharing highlights from our live Q&A session with BABOYOT members.  These quarterly events are an awesome opportunity to connect with Founders and answer their most pressing financial questions.  Some of the topics we tackled: Food Service vs. Wholesale Pricing: Discover why conventional wisdom about which channel is most profitable doesn't always hold true. One founder shares how running her numbers completely changed her channel strategy. The COGS “Gray Area”: Is your kitchen rental really part of your Cost of Goods Sold? Sarah provides clarity on this common question and explains her COGS philosophy for better visibility into your true business health. Hidden Costs of Co-packers & 3PLs? The best partners will be upfront and clear about all of the costs of doing business. Sarah shares specific questions to ask potential partners to avoid surprise fees signing with co-packers and 3PLs.  Whether you're just starting out or looking to optimize your existing food business, this episode offers real-world solutions from Sarah and the collective wisdom of our BABOYOT community. This episode is brought to you by Settle.  Settle helps you make smarter decisions, and keep your business on track to grow sustainably. Head over to settle.com/goodfood to learn how brands like Carnivore Snax use Settle to manage their cash flow and growth.   Join The Good Food CFO Community:  Follow us on Instagram: @thegoodfoodcfo  Connect on LinkedIn: @sarahdelevan  Watch on YouTube: @thegoodfoodcfo  Become a Member: BABOYOT

If you've been a long-time reader or a contracting company owner, you've probably heard about "Cost of Goods Sold" (COGS). But what does it really mean, and why is it crucial for your construction business's success? Understanding COGS isn't just about accounting—it's about making smart decisions for profitability, pricing, and more.    1. What is the Cost of Goods Sold (COGS)?    COGS represents the direct costs of creating the products/services your business sells/provides. These include materials, labor hours, and even manufacturing overheads. Any expense that contributes directly to a product's creation is included in COGS.   COGS provides critical insights into your business's efficiency and profitability. It's a fundamental metric showing how much you spend to produce inventory relative to your sales.     Contractors often ask us if they can buy our Chart of Accounts with Cost of Goods Sold and import them into their QuickBooks Desktop or QuickBooks Online file. The answer is yes! We also offer the complete QB Setup Template. 2. What are the components of COGS?  COGS isn't one-size-fits-all. It includes different types of costs depending on your business.  Here are the main components typically included in COGS: Materials: Raw ingredients or parts used to provide your service Payroll: The wages you pay to employees directly involved in production Manufacturing Overheads: Indirect costs required to produce services, such as equipment depreciation or utility costs.  Note  General overheads, such as office or marketing costs, are not included in COGS—only expenses tied directly to production count.  3. How do I calculate COGS?  Fortunately, calculating COGS follows a straightforward formula: COGS = Beginning inventory + Purchases during the period – Ending inventory  Breaking it down: Beginning inventory: The inventory value on hand at the start of the accounting period.  Purchases: All costs for new inventory bought or manufactured during the period.  Ending inventory: The value of unsold inventory at the period's end.  Example Calculation  Imagine you run a small boutique that sells handmade gifts. If: Your beginning inventory is $5,000,  You spent $8,000 on materials and production, and  Your ending inventory is $2,000,  Then your COGS would be:  $5,000 + $8,000 – $2,000 = $11,000  This $11,000 represents the cost of creating the products you sold during the period.  But wait - that is for a retail business. Simple. What about construction? Direct Costs are tied to the jobs (field labor, materials, and other cost items). Office materials (pencils, paper, toner, etc.) are overhead. Yes, an accountant could say these many pencils are used in the field and that notepad is used in the truck.  The answer is the dividing line of the direct costs to the job: the Costs of Goods Sold (COGS). That is why we've created our Chart of Accounts, which you can use inside QuickBooks, depending on your type of construction business. Most COGS accounting methods you will find are for inventory valuation, which is confusing to most contractors. Confusion always arises about the material. A construction contractor may purchase material and resell it to their customer at cost, thinking it is a reimbursable expense. (You lose money when doing this.)   Remember, all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Washington State has a clear explanation. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Every line item on a customer invoice is income.   Purchases for the material are the Cost of Goods Sold or expenses if you are short-cutting your accounting. I have seen financial statements backed out because they will reflect reimbursable income as a negative number, thereby showing it as a deduction. (The net effect is double-dipping on the expense side.) The cause is that the accounting software is not being correctly set up. We fix bad QuickBooks setups for Construction Contractors. New Construction Home Building is another area of confusion. In the mind of many construction contractors, a Spec home is any new house being built for resale. That is true; it is a New Construction House. The question is on the construction accounting side. For the Owner and Developer (who might be the General Contractor running the job), it is a Spec Home.  For the General Contractor who is building a New Construction Home for a Developer, it is NOT a Spec Home. Why might it seem the same as both are New Construction Houses? The question to be answered is, "Who owns the house?" - It is a Spec House in the accounting system for THE OWNER.     If the General Contractor does not own the house, then from the accounting side for that specific General Contractor, the house is a Custom Home with an owner who is not the General Contractor.   Suppose the General Contractor or developer owns the new house being built. In that case, it is a Spec House in the Accounting System. All costs roll up into WIP (Work-In-Process) and convert to COGS when the house is sold, not before. Recognize expenses when the home sells. Otherwise, expenses one year and sales the next equals taxes.    In Washington State, all construction contractors working for a spec builder must collect sales tax on all services (labor and material) when billed by the general and trade construction contractors. In Washington State, all Construction Contractors working on Custom Homes, Residential or Commercial Projects, large or Small Remodels, or Handyman Projects can accept a reseller permit from the General Contractor. The general contractor bills and collects sales tax from the Owner.   In Washington State, Contractors must collect sales tax on all retail projects, including Labor, Materials, and others. Sales tax must be collected on every line item. Customer Discounts can be given for any reason. And that is just for one state. Pro Tip  Consult with your accountant to identify the best method for your business—tax implications vary by approach.  4. Why does understanding COGS matter?  Knowing your COGS is a game-changer for managing and growing your business. Here are some ways it benefits you: Profitability analysis - COGS is crucial for calculating gross profit. Subtracting COGS from revenue reveals how much your products contribute to your bottom line.  Pricing strategy - Understanding how much a specific project costs allows you to set prices that cover expenses while leaving room for profit.  Financial reporting - COGS is necessary for accurate income statements and tax reporting. It also demonstrates operational efficiency, which is key for attracting investors or securing loans.  Tax benefits - COGS are deductible, reducing your taxable income. The more precise your calculations, the better-positioned you'll be during tax season.  5. How can your accountant help  Managing COGS can be complex, but you don't have to go through it alone. Your accountant is your best ally when navigating this process.  They can: Help you set up your Contractor Chart of Accounts Ensure all eligible expenses are accounted for (and not missed!).  Revise your tax strategy while staying compliant with regulations.  One of the most dangerous and difficult steps in setting up the Chart of Accounts is during QuickBooks setup, especially for contract service-based businesses. Get this one thing right, and your QuickBooks for contractors can generate useful financial and job costing reports. If you get it wrong, you will never get useful reports, no matter who handles your contractor's bookkeeping services needs. The reports you do get could lead you to make decisions based on insufficient information that could destroy your entire construction company. A thought  Understanding your Cost of Goods Sold isn't just an accounting exercise—it's the foundation for business success. Calculating and tracking COGS effectively will empower you to make better pricing, profitability, and growth decisions.  Why struggle with numbers when you can partner with someone who lives and breathes construction accounting? Freeing up your time lets you focus on growing your business. You are never too small for us to help, and we can help you begin with your first day in business.    I am looking forward to being of assistance.   About The Author: Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

You have heard of COGS or Cost of Goods Sold, but do you know what they are and why they are important to your small business?  Let's take a look at 10 things you should know about cost of goods sold.  ______   DIVE IN DEEPER & LEARN MORE ABOUT YOUR NUMBERS

On this podcast, I break down the essential metrics every franchise owner needs to track to ensure business health and growth. From weekly reviews to annual planning, I cover the key numbers that have helped me scale to $45M+ annually. Here's what you'll learn:The two most critical metrics: invoices and salesFour weekly metrics including Payroll % of Sales and Cash BalanceMonthly metrics like Cost of Goods Sold % and Sales Close RateQuarterly metrics including Turnover % and New Unit PipelineAnnual planning essentials like Employee Reviews and Debt ReviewHow to use these metrics to make data-driven decisions for your franchiseIf you want to better understand your franchise's performance and grow your business, this podcast is for you. It gives you a clear set of numbers to watch that can help guide your decisions.Send me a text3 ways I can help you make money through franchising: - Learn the basics from my weekly newsletter - Work directly with my team to buy your first franchise - Scale your franchise to 8-figures by joining my private community Find me on X / Twitter, LinkedIn, & YouTube

HoldCo Bros are back! Nik and I are talking about business ideas and what's happening in our companies. In this episode, we discuss the business potential of Instagram's Close Friends feature, how influencers can use it to boost engagement, and how you could help.We also cover the concept of Negative COGS (Cost of Goods Sold) - acquiring products for free or how you can get paid to acquire products and then sell them- with examples like EcoScraps. We talk about a lake weed removal business started by two college students, and how they scaled up with smart social media marketing. Finally, we share ideas for home service businesses that could benefit from time-lapse video marketing to go viral.Learn more about Nik here:http://linktr.ee/cofoundersnikTimestamps below. Enjoy!---Watch this on YouTube instead here: tkopod.co/p-ytAsk me a question on or off the show here: http://tkopod.co/p-askLearn more about me: http://tkopod.co/p-cjkLearn about my company: http://tkopod.co/p-cofFollow me on Twitter here: http://tkopod.co/p-xFree weekly business ideas newsletter: http://tkopod.co/p-nlShare this podcast: http://tkopod.co/p-allScrape small business data: http://tkopod.co/p-os---00:00 Introduction01:18 Close Friends Feature on Instagram02:07 Leveraging Close Friends for Increased Engagement03:23 Monetizing the Close Friends Feature06:34 Scraping Instagram Followers for Business Opportunities11:10 Exploring Negative COGS Business Ideas15:15 The Lake Weed Removal Business17:14 Chemical-Free Pond and Lake Cleaning17:37 Going Viral on Social Media18:23 A Generous Offer18:38 Business Boom and Social Media Success20:00 Franchising and Licensing Opportunities20:21 Top 10 Media-Accelerated Home Services Businesses21:28 Pressure Washing and Pool Cleaning23:11 Home Cleaning and Tree Trimming25:24 Painting and Landscaping28:46 Window Washing and Gutter Cleaning29:10 Carpet Cleaning and Business Strategy29:49 Leveraging Social Media for Business Growth31:56 Partnering with Nationwide Franchisors

In this solo episode, CJ provides a comprehensive guide on annual planning and delves into the complexities of budgeting for hypergrowth companies. He covers topics such as building sales capacity, modeling out rep time, over-assignment, designing marketing budgets, and costing out the full P&L. He discusses the role of various departments in the annual planning process, including R&D (Research & Development), marketing, sales, customer success, and customer support. The podcast highlights the significance of headcount in budgeting, the intricacies of sales capacity modeling, and the necessity of interdepartmental collaboration. CJ offers practical tips for managing expenses, planning for future growth, and ensuring that sales teams are adequately supported to meet their targets. The episode is a deep dive into the strategic and operational aspects of financial planning in high-growth environments.If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 38,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages.

A look at Cost of Goods Sold (COGS) an important metric for law firm profitability. A lesson taught by a group of teenagers to a room full of lawyers.

In this mailbag edition, CJ introduces listeners to Run the Numbers' first intern. Intern Charlie fills us in on what his internship entails and the nature of the early recruitment process for college internships these days. Then CJ answers questions submitted by listeners. He shares his thoughts on when to join a startup to maximize your equity outcome, where to pull cash from when you need to free up budget, what experience he believes is required to run a $100 million+ SaaS company, whether or not you have to sell to the enterprise to become a public SaaS company, and what he means when he says that the gross profit is where the race starts. CJ talks about his own career path, why he switched from consulting and private equity to operator and CFO, and what he wishes he had known about his skills and potential job paths when he was in college. This episode is full of advice and insights for college students and finance professionals alike. If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.—SPONSORS:Planful is a financial performance management platform designed to streamline financial tasks for businesses. It helps with budgeting, closing the books, and financial reporting, all on a cloud-based platform. By improving the efficiency and accuracy of these processes, Planful allows businesses to make better financial decisions. Find out more at www.planful.com/metrics.Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist. Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages.

Nevis Brands CEO John Kueber joined Steve Darling from Proactive to announce the company's financial results for the second quarter, ending May 31st, 2024. Nevis reported cannabis beverage royalty revenues totaling $436,532, with a Cost of Goods Sold amounting to $145,170 and a Gross Profit of $291,392. This performance marks a 15 percent increase over revenues from the previous quarter. Kueber expressed his satisfaction with the company's growing revenues and positive EBITDA. He highlighted the ongoing expansion of Nevis's presence in active states, the development of their product line, and the increasing number of dispensaries selling Nevis products. According to Kueber, Q2 revenues were generated from sales in Washington, Oregon, California, Nevada, Colorado, Arizona, Ohio, and Missouri. He also mentioned that Michigan and Mississippi are still in pre-production phases and are expected to contribute to revenues in the third quarter. Looking ahead, Kueber emphasized Nevis's commitment to innovation, with plans to introduce new products to existing markets in 2024, ensuring the company continues to capture market share and drive growth. #proactiveinvestors #nevisbrandsinc #cannabis #sorse #major #thc #JohnKueber, #Q2Results, #RevenueGrowth, #EBITDAPositive, #StateExpansion, #MajorGummies, #EdiblesMarket, #CannabisIndustry, #BrandRecognition, #RoyaltyModel, #LowCapEx, #WashingtonMarket, #MissouriGrowth, #MichiganExpansion, #MississippiMarket, #InvestorUpdate, #HeadsetTracking, #CannabisBeverages, #EdiblesGrowth#invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

SUMMARY: “Don't shoot for minimization or maximization. Shoot for optimization!” So says our expert and co-founder of Inventory Ally, Emmitt Nantz, on this episode of Inventory Nation. Host Nicole Clausen welcomes this leader in the field of veterinary operations improvements to explain why Cost of Goods Sold (COGS) is currently a high priority and how systems have evolved to increase efficiencies. In particular this conversation highlights the power of harnessing predictive data analytics to locate that sweet spot we all want when it comes to having not too much, and not too little, but JUST the right amount of inventory. It's a driver of profit and frees up resources for more important things like pay raises, bonuses and capital improvements to our practices. Learn how tools like Inventory Ally and the Inventory 911 Toolkit streamline operations, initiate incremental improvements, reduce inventory reactivity and systematize product replenishment. “We want to strive for perfection because it sounds like, well, perfection,” says Nicole. “But actually what we want to strive for is excellence and (inventory) guardrails are what give us that excellence.” Join our host in welcoming a systems wizard ready to help us take control and strike that balance!Visit this link if you'd like to learn more about Inventory Ally or schedule a demo. Start unlocking savings and unleashing your veterinary practice's full potential today!Would you like to learn more about Inventory 911 Toolkit, our step-by-step blueprint to help inventory managers optimize knowledge, strategy and confidence? Click here!You can also join our virtual neighborhood for inventory managers and other veterinary professionals for free by visiting this link.KEY QUOTES: “Cost of Goods Sold actually has a lot of inefficiencies and lack of predictability built into it already and that's why (COGS) becomes a key driver in the big picture.” (Emmitt)“If you have stale inventory hanging around on the shelf, you're really taking away opportunities that could do some really cool things in your practice.” (Nicole)“If you're trying to reduce COGS, then we have to make sure we have the full picture first … so I invite you to have a conversation with your accountant to understand where they're getting that number from and what's included, what's not.” (Nicole)“If your budget is so restrictive that you almost can't keep anything in stock, we have bigger problems that we need to address.” (Nicole)“Instead of being a target, Cost of Goods Sold is really more of an outcome that we should start to monitor for changes over time.” (Emmitt)ABOUT OUR GUEST:Emmitt Nantz is a co-Founder and visionary leader at Inventory Ally, a cutting-edge inventory management software solution designed specifically for veterinary hospitals. By leveraging the latest technologies and industry insights, Inventory Ally equips veterinary teams with the tools they need to achieve unparalleled efficiency, cost savings, and improved patient care. Learn more about Inventory Ally or schedule a demo at: www.inventoryally.comFOLLOW OR CONTACT US: Website | LinkedIn | Facebook | Instagram

When it comes to managing Cost of Goods Sold, it's critical to have a strategy for tracking and reducing expenditures – which is why our Veterinary Care Logistics community always has lots of questions on the topic! It's also why we're all about COGS on this episode of Inventory Nation when Host Nicole Clausen shares her step-by-step approach to securing your clinic's all-important bottom line. We're looking at how to define your clinic's operational profile and understand the best practices necessary to put your team on solid ground. It's after that, says Nicole, that inventory managers can really start to dig deep and pinpoint why costs might be high, where adjustments to spending versus revenue can be made and how to bring your overall equation into perfect balance. Managing COGS isn't just about trying to spend less! The Holy Grail of COGS combines both reducing expenditures and generating revenue for your entire veterinary clinic's long-term bottom-line health. Get the overview of what factors determine your practice's individual profile and which key performance indicators to track. Not for nothing, Nicole has been dubbed “the COGS Queen” by her admirers. Tune into this breakdown and you'll know why – and be inspired to keep coming back for more!Don't forget that June 5th is Inventory Manager Appreciation Day! Celebrate that person who keeps things humming along at your veterinary practice – even if it means celebrating yourself!Would you like to learn more about Inventory 911 Toolkit, our blueprint for helping inventory managers optimize knowledge, strategy and confidence? Click here!You can also join our virtual neighborhood for inventory managers and other veterinary professionals for free by visiting this link.ABOUT VCL:Veterinary Care Logistics serves veterinarians and their teams who are frustrated that their current inventory system is not functioning correctly and are facing out of control inventory costs and improperly stocked hospitals. VCL helps veterinarians through inventory analysis, comprehensive step-by-step action plans, and thorough team member training. My clients experience great success and rave about my work because I roll up my sleeves and get dirty working with your hospital to improve your inventory as if it was my own hospital.FOLLOW OR CONTACT US: Website | LinkedIn | Facebook | Instagram

If you're building a mission-driven business, there's one particular number you definitely need to check. Understanding this number will quickly pinpoint any issues in your business and determine if you're building a sustainable, profitable venture.In this episode of Her CEO Journey, we demystify the significance of this essential metric for business vitality: Gross Margin.Join our host Christina Sjahli as she unveils the power of this metric, teaches you how to calculate it in minutes, and explains what it tells you about your pricing, costs, and overall financial sustainability.  Access the path to informed decision-making and build a thriving business that resonates with your purpose!Listen and move from panic to power. Key Takeaways:Gross Margin Explained: It's a profitability indicator representing revenue minus the direct cost of delivering your service or product.Calculating Gross Margin Percentage: Revenue minus Cost of Goods Sold divided by Revenue.Interpreting Your Gross Margin:Below 30%: Potential issues with pricing or cost of goods sold (too high or too low).Too High Cost of Goods Sold: May indicate missing costs or unadjusted pricing.Too Low Cost of Goods Sold: May indicate incorrect pricing not reflecting all costs.Resources for Further Exploration:Listen to our Pricing Series (Episodes 160-163) on Her CEO JourneyProfit Reimagined's Fractional CFO ServicesProfit Reimagined CFO services can be a game-changer when it comes to understanding and optimizing your gross margin and pricing strategy. A fractional CFO brings deep financial expertise to the table by analyzing your financial data to pinpoint areas where your cost of goods or services sold might be inflated or where your pricing might not be fully capturing your value. Having a fractional CFO will help you develop strategies to streamline your operations, negotiate better deals with suppliers, and implement data-driven pricing models that ensure you're covering your costs and generating healthy profits.Episode Highlights:[00:54] Introduction to the importance of a single number for business health.[01:33] Understanding Gross Margin.[02:45] Calculating Gross Margin Percentage and why it is important.[03:25] Interpreting Your Gross Margin: What a low percentage tells you.[05:20] Resources for further exploration on pricing and financial solutions.Resources:Connect with Christina Sjahli on LinkedIn Check out Profit Reimagined's Fractional CFO ServicesTurn your purpose into profit, visit our Website and  LinkedInDiscover if our Fractional CFO Services are your perfect fit by taking this quiz.Enjoyed This Podcast?Each review you write helps us reach more women in business. Your insights are invaluable—share this with your friends and amplify the impact! Connect With the Profit ReimaginedReady to turn purpose into profit? Transform your financial strategy and embark on a journey toward a sustainable and thriving business. Schedule a chat with the team today!

In this episode of Mobile Money by moomoo, host Justin Zacks takes listeners on a comprehensive journey through the labyrinth of financial jargon and acronyms. With a career deeply entrenched in financial markets, Zacks aims to demystify the complex terminology that can often leaves investors overwhelmed and confused. Starting with the basics, Zacks breaks down fundamental market terms such as balance sheets and income statements, providing listeners with a clear understanding of the financial health of companies. He elaborates on key concepts like assets, liabilities, equity, COGS (Cost of Goods Sold), and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), shedding light on their significance in evaluating company performance. Zacks delves into the world of traders' lingo, distinguishing between day traders and swing traders while unraveling the intricacies of common and preferred stocks. He explains how different trading strategies, such as long-only, long-short, and arbitrage funds, operate within the market ecosystem. As the discussion evolves, Zacks explores the colorful language of market animals, from bulls and bears to whales and fish, offering insights into the psychology behind market sentiments. He also ventures into the realm of online trading communities and social media-driven investment strategies, discussing phenomena like FOMO (Fear of Missing Out), YOLO (You Only Live Once), and diamond hands. The episode provides a comprehensive guide to help novice and seasoned investors navigate the intricate landscape of financial markets with confidence. Disclaimer: The opinions expressed are those of the host and any guest speaker, and not necessarily those of Moomoo Technologies Inc. or its affiliates. The podcast is provided for informational and educational purposes and is not a recommendation or endorsement of any particular investment or investment strategy that may be mentioned or covered in the pod. All investments involve risk and the loss of principal is possible. Moomoo is not affiliated with any outside guests or their companies. Information provided in this podcast is general in nature and may not be appropriate for all investors. The moomoo app is an online trading platform offered by Moomoo Technologies Inc. Securities, brokerage products and related services available through the moomoo app are offered by Moomoo Financial Inc., a member FINRA/SIPC. The Information contained on this podcast Is general In nature and has been prepared without any consideration to the listener's investment objectives, financial situations or needs. Listeners should consider the appropriateness of the information having regard to their personal circumstances before making any investment decisions. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Past performance is no guarantee of future results.  

In this episode of the Smart Consulting Sourcing podcast, your host, Helene, dives into a topic that's essential but often misunderstood in the world of consulting: the cost of revenue. Think of it like the Cost of Goods Sold in other industries, but instead of physical products, we're talking about the brainpower, time, and expertise of consultants. So, the cost of revenue covers everything it takes to get those brilliant minds working on your project. We're delving into what exactly makes consulting firms financially tick. Is the cost structure as straightforward as it seems? What's the formula for profitability here? And most importantly, what's truly crucial in negotiations—is it focusing on the consultants' margin, or is it the measurable value you get from their expertise? Understanding these inner workings can give you a real edge in negotiating consulting fees effectively. Don't miss out on this insightful discussion!

Nevis Brands CEO John Kueber joined Steve Darling from Proactive to announce the company's financial results for fiscal year 2023 and the fourth quarter ending November 30, 2023. Nevis Brands reported revenues of $671,000 for the year, with Cost of Goods Sold amounting to $278,604. For the fourth quarter alone, Nevis generated revenues of $395,876, primarily derived from royalties received from Licensees in five states, while Cost of Goods Sold stood at $134,223. Kueber expressed satisfaction with the conclusion of the fiscal year, highlighting the significant expenses and charges incurred during the transition from Pascal Biosciences Inc., the company's previous business entity. Notably, Nevis Brands achieved growth in revenues and managed to reduce costs of goods sold in the fourth quarter, signaling positive momentum in its operations. Furthermore, Kueber emphasized the company's ongoing efforts to expand its revenue streams, particularly in states where Nevis is currently operating. He expressed excitement about the additional revenues expected from licensees that have been secured but have yet to contribute to revenues. Notably, revenues for the fourth quarter did not include contributions from Nevada and California, both of which are now revenue-generating states. Additionally, Michigan and Missouri are anticipated to contribute to revenues in 2024, further bolstering Nevis Brands' financial performance. Looking ahead, Nevis Brands sees significant growth opportunities for its major brand, not only through expansion into new markets but also through the introduction of new products. Kueber emphasized the potential for diversification beyond beverages into other edible products, underscoring the company's commitment to innovation and market expansion. In summary, Nevis Brands' financial results for fiscal year 2023 and the fourth quarter reflect steady progress and positive momentum in its operations. With a strategic focus on revenue growth and product diversification, the company is well-positioned to capitalize on emerging opportunities in the cannabis market and deliver value to its shareholders. #proactiveinvestors #nevisbrandsinc #cannabis #sorse #major #thc #CannabisBeverages, #FinancialResults, #RevenueGrowth, #CannabisIndustry, #BusinessExpansion, #NewProducts, #LicensingModel, #MarketExpansion, #IndustryInnovation, #StateExpansion, #CannabisMarket, #EconomicGrowth, #InvestmentOpportunity, #CannabisLicensing, #ProductInnovation, #BusinessStrategy, #EconomicImpact, #RevenueForecast, #CannabisEntrepreneurship, #MarketTrends, #FinancialPerformance, #BusinessGrowth, #CannabisRegulations, #CannabisInvestments #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Like you, we all want our water business to be profitable.  Embark on a journey to make your water business not just successful, but wildly profitable! While many believe that sales alone can solve all challenges, the truth lies in understanding the intricate dance of profitability and cash flow. In the wise words of Stephen Covey, "No margin, no mission." We all share the conviction that a thriving business is one that can afford to invest in its people and resources. Even for non-profits, the bottom line remains crucial — successful organizations, whether for-profit or not, need to pay their bills and ensure sustainability. Sales are undoubtedly a driving force, but the misconception that more sales always mean more success can lead businesses astray. Ever witnessed a company sell itself out of business on Shark Tank? It happens when the demand exceeds the capacity to deliver due to a lack of cash flow. Enter the eye-opening world of Profit and Loss statements and explore your business through the lens of the Eight Cash Flow Drivers, outlined in the groundbreaking Entrepreneurial Operating System (EOS) by Gino Wickman. These drivers — Price, C.O.G.S. (Cost of Goods Sold), Margin, Ancillary Sales, Service Time, Errors, Compensation/Labor Costs, A/R Days, and G&A Expenses — form a strategic roadmap to enhance your water business's cash flow and profitability. This new Scaling Up H2O episode unravels the secrets behind these drivers and shows how implementing them can transform your business landscape. Don't miss the chance to elevate your company's profitability starting tomorrow — tune in now to scale up your financial success knowledge! Your friend as you drive from client to client,  Trace Blackmore, CWT   Timestamps 01:00 -  Upcoming Events for Water Treatment Professionals  04:40 - How to know if a conference is worthwhile to attend 05:30 - Showing up with a full cup mentality 10:45 - Trace Blackmore invites you to Scaling UP! Your Cash Flow 39:23 - Drop by Drop With James McDonald    Quotes "Sales for sales' sake can put you out of business" - Mary Kay Ash, the founder of Mary Kay Cosmetics "No margin, no mission." - Stephen Covey, author of The 7 Habits of Highly Effective People   Connect with Scaling UP! H2O Email Producer: corrine@blackmore-enterprises.com Submit a show idea: Submit a Show Idea LinkedIn: in/traceblackmore/ YouTube: @ScalingUpH2O   Links Mentioned Ep 204 Being Profitable with the Boilermaker Hamburger Ep 260 Profit First Ep 267 Making a Profit Ep 315 The Intentional Growth Framework with Ryan Tansom Shark Tank TV Show on ABC The Rising Tide Mastermind Scaling UP! H2O Academy video courses   Books Mentioned The 7 Habits of Highly Effective People by Stephen Covey Traction: Get a Grip on Your Business by Gino Wickman What the Heck Is EOS?: A Complete Guide for Employees in Companies Running on EOS  by Gino Wickman   Drop By Drop with James  In this week's episode, we're thinking about what happens when a large steam user in a facility suddenly starts using steam. What happens inside the boiler? How is the steam pressure impacted? How does the water level change in response to this suddenly large steam demand? When is feedwater triggered? What is the impact of this cooler feedwater upon the hotter water inside the boiler? How could this impact steam output rate? Could it cause boiler carryover and why? How could low level alarms be triggered if the high demand continued long enough?    The answers are actually very interesting and interrelated. Spirax Sarco has a nine-part series on YouTube called “The Inside Story.” This is a CLASSIC series that every industrial water treatment professional should watch. They actually let you view inside the boiler as steam is being produced and show what happens at low pressures, high pressures, increased demand, etc. If you've already seen the series, they are worth watching again. If you haven't seen it, get your popcorn and pocket protector, because you're in for a treat!  Part 6 addresses the topic of today's Drop by Drop episode on increased demand. I'll be sure to get the links to Trace so he can hopefully include them into the show notes for this episode. Otherwise, if you search for “steam boilers the inside story” in your favorite search engine, you are likely to find the series. Spirax Sarco's Steam Boilers - The Inside Story: Part 1 - Introduction Steam Boilers – The Inside Story:  Part 2 – Basic Boiler Control Steam Boilers – The Inside Story:  Part 3 – Water Level and Gauges Steam Boilers – The Inside Story:  Part 4 – Feed Water Control Steam Boilers – The Inside Story:  Part 5 – Low Pressure Operation Steam Boilers – The Inside Story:  Part 6 – Increased Demand Steam Boilers – The Inside Story:  Part 7 – Very High Demand Steam Boilers – The Inside Story:  Part 8 – TDS Control Steam Boilers – The Inside Story:  Part 9 – Summary   2024 Events for Water Professionals Check out our Scaling UP! H2O Events Calendar where we've listed every event Water Treaters should be aware of by clicking HERE or using the dropdown menu.  

If you're feeling overwhelmed by the complexities of tax planning and financial decisions, then you're not alone! Managing your business's tax structure, retirement planning, and investment options can feel like navigating a maze of rules and regulations. David Wilcox sheds some light on how you can take advantage of legal and accounting expertise to make informed decisions and make your money count for taxes and retirement. “You're going to have a lot of tax surprises, operational surprises, things you didn't have to deal with directly as an employee.” -David Wilcox, MBA, CTP, EA Key Takeaways Maximize tax savings and financial growth with optimized tax planning strategies. Ensure legal protection and peace of mind for your business through essential documentation. Discover the best tax classification and entity selection for your business to maximize benefits. Simplify payroll taxes and efficiently manage billing to streamline your business operations. Explore retirement account options and effective tax strategies for long-term financial security. About David Wilcox David Wilcox, MBA, CTP, EA is the Founder of Numbercraft and a skilled tax professional with over 20 years of experience. He is an EA (Enrolled Agent), CTP (Certified Treasury Professional), and Licensed Tax Consultant in Oregon. Beyond the tax, accounting and finance realm, he has years of related IT experience in CRM systems. David also writes and helps others to develop their business ideas through encouraging them and helping them form strategies and identifying potential partners and customers. David obtained his MBA at the University of Barcelona and is completely fluent in Spanish. David also has five years of experience with international and multinational living and is fluent in the unique documentation challenges which this lifestyle entails. David founded Numbercraft to assist small businesses and individuals, harnessing the power of cloud based accounting and CRM systems to create efficiencies and improve data. Find Out More https://numbercraft.tax/ https://www.facebook.com/numberengineer https://twitter.com/numberengineer https://www.linkedin.com/company/numbercraft/ Key Moments 00:00:02 - Introduction to David Wilcox's expertise 00:04:28 - Setting up a Business Entity 00:09:50 - Registering with the IRS 00:11:59 - Importance of Financial Segregation 00:15:06 - Key Considerations for New Business Owners 00:15:29 - Importance of Clear Business Planning 00:19:04 - Difference in Getting Paid 00:23:00 - Deducting Business Expenses 00:27:03 - Cost of Goods Sold and Business Taxes 00:29:27 - Importance of Form W-9 00:30:11 - Tax Structure and Independent Contractors 00:31:43 - 1099 Forms and Tax Deductions 00:35:43 - Employment vs. Contractor Relationships 00:40:30 - Quarterly Tax Filing and Financial Planning 00:43:27 - Payroll Services and Payroll Tax Compliance 00:44:51 - Importance of Payroll Taxes and State Obligations 00:46:06 - Understanding Payroll Tax Liability 00:47:44 - Importance of Outsourcing Billing and Coding 00:50:30 - CEO Mindset and Business Oversight 00:55:38 - Retirement Planning and Tax Benefits for Business Owners 00:59:22 - Traditional vs. Roth IRAs 01:00:53 - Backdoor Roth Contributions 01:02:06 - SEP IRA for Self-Employed 01:04:42 - Business Succession Planning 01:07:17 - Professional Advice and Disclaimers

Hey there, dudes! In today's episode of Operation Agency Freedom, we're diving into the nitty-gritty of agency finance. I know, it might not sound like the most thrilling topic, but trust me, it is the most important financial metric when it comes to growing your agency's profitability. When growing a marketing agency, the first thing that we do is we look at the numbers. And the most important metric that I've seen is cost of goods sold - the ultimate metric that I swear by for evaluating a marketing agency's financial health. So I will be dissecting the concept of cost of goods sold to its ideal percentage and the common culprits behind inflated costs. I will also be giving you some really good advice on how to make small, sustainable improvements to your cost of goods sold without causing chaos in your agency. This way, you'll be well on your way to a healthy and profitable business. So, if you're keen to boost your agency's financial know-how and take tangible steps towards greater profitability, this episode is exactly what you're looking for! Tune in, absorb all those pro tips, and get ready to SCALE your agency. Cheers to your agency's financial success! Discussion Points: 00:00 Intro. 03:32 The importance to focus on cost of goods sold. 09:31 High costs due to inefficient business practices. 10:34 Maximize financial efficiency, reassign resources strategically. 14:11 Outro. Resources:  • Connect with DUDE on the following social channels • Facebook / dudeagency • Instagram / dudeagency.io • Visit our YouTube channel / @dudeagency2093 • Check out our website and see how we can help you run a profitable agency https://bit.ly/3RPh4Zn   

DOWNLOAD THE CAFE VIABILITY SPREADSHEET: https://mailchi.mp/valor/viability-spreadsheetSign Up for Alerts About Our Community (coming soon) – Courses, Exclusive Videos, PDFs, Spreadsheets and more: https://mailchi.mp/018d9c38a953/valorcafecommunityThanks for listening, following/subscribing, giving us a good review, and sharing with your friends on social media. It goes a long way!We're live just 42 minutes from Six Flags Over Georgia to answer a very common question: are coffee shops profitable? We take a look at our Cafe Viability Spreadsheet (link to download above!) and go on a hypothetical new cafe's first year. We'll be talking about the terms used, filling out the spreadsheet together, sharing insights we've learned over the years, and ultimately arrive at an answer of whether a standard-ops cafe can make a buck! Thanks for listening, y'all :P*If you purchase something through one of our links, we may be entitled to a share of the sale*We're partnered with Clive to bring you sweet deal at a discounted rate! Use Discount Code VALOR5 at checkout for 5% off Lucca and Eureka products!Shop Clive products here: https://clivecoffee.com?sca_ref=5315485.6axWuRlcErBuy Valor Coffee: https://valor.coffee/shopWatch on Youtube: https://youtube.com/valorcoffee16Want to become a Wholesale Partner? Email us at wholesale@valor.coffee to set up an account!Want us to review your coffee? Have a question you want to answer on the show? Send us an email to info@valor.coffeeFollow the Valor Coffee Podcast on Instagram: http://instagram.com/valorcoffeepodFollow Valor on Instagram: http://instagram.com/valor.coffee____Subscribe to Riley's YouTube Channel:  https://youtube.com/@rileywestbrookFollow Riley:  https://instagram.com/rileywestbrookFollow Ross: https://instagram.com/rosswaltersFollow Ethan's Parody Account:  https://instagram.com/ethanrivers77700:00:12 Introduction00:04:27 Why do people open coffee shops as their first business?00:11:52 Spreadsheet and Terms Overview00:22:52 Different size spaces and physical locations affect viability00:31:09 This is not a profit and loss statement00:31:41 What is “Cost of Goods Sold” + other terms 00:34:15 Talk to your accountant!00:39:40 Let's fill in the spreadsheet00:46:45 Rent Calculator00:50:27 Staff and Wages Calculator00:58:25 Paying Yourself a "Base Wage" as an Owner00:59:59 Multiple other categories, rapid-fired for your listening pleasure (and show length)01:06:05 Cost of Goods Sold, Transactions per Day, and Average Transaction.01:11:34 Is this cafe profitable?01:14:48 How would a hypothetical year two look?01:19:50 Conclusion

Today with Vita Vygovska: Welcome to Window Treatments for Profit. In today's epidose, Vita talks about the importance of having monthly meetings with your bookkeeper to review your financial statements and performance. She explains the steps and details involved in going through the Profit and Loss statement, the Cost of Goods Sold, the operational expenses, and the net income. Vita's Ah-Ha Moments: “Gross margin—the difference between revenue and cost of goods sold—is a pivotal metric. Aiming for 60-65% is the goal, and comparing this to last year's performance guides us on the right track.” -Vita “Whether you're a solopreneur or managing a team, it's essential to account for your salary as part of operating expenses.” -Vita More About Vita Vygovska: Vitalia Vygovska (Vita for short!), CWFP, MBA, is an award-winning window treatment specialist, author, speaker, and the LuAnn University instructor for Systems Driven Operations. Connect with Vita Vygovska Website Instagram  Facebook  Pinterest YouTube LinkedIn Our Favorite Links Madeleine MacRae's Home Pro Toolbox Windowworksnj.com Vitalia Inc. Exciting Windows What's new with LuAnn Nigara LuAnn University - Registration is now OPEN for the Winter 2024 semester! Watch the Docuseries! http://www.luannnigara.com/cob Purchase LuAnn's Books Here: Book 1: The Making of A Well – Designed Business: Turn Inspiration into Action Audiobook: The Making of A Well – Designed Business: Turn Inspiration into Action Book 2: A Well-Designed Business – The Power Talk Friday Experts Book 3: A Well-Designed Business – The Power Talk Friday Experts Volume 2 Connect with LuAnn Nigara LuAnn's Website LuAnn's Blog Power Talk Friday Like Us: Facebook | Tweet Us: Twitter | Follow Us: Instagram | Listen Here: Podcast

In episode #124, I address the COGS, or Cost of Goods Sold, departments on your SaaS P&L. There are four common departments with pure play SaaS. - Technical Support - Customer Success - Professional Services - Dev Ops Subscribe to Ben's SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben's SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben's SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray

This Podcast Is Episode 544, And It's About Why Banks Won't Lend Money To Your Construction Business Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need. Think of all the times: You loaned money to a friend or relative Provided labor and materials for somebody's home or business without a deposit check Did change order work that you never got paid for doing and never will Gave a subcontractor/employee an advance on their paycheck, and you never got paid back Multiply that by 100,000, and you will understand why banks seem so tight-fisted about loaning money. Banks stay in business by loaning money and earning interest. They work hard to find people, companies, and contractors with reasonable credit risks they can lend money to and get paid back promptly, with all of the interest due to them. Do your best to avoid raising any of these red flags. #1 Your Profit & Loss and Balance Sheet Reports do not conform to financial industry standards #2 The financials tell the banker your bookkeeper doesn't understand Construction Accounting #3 The preparer's signature on the annual tax returns is not from a qualified tax specialist #4 You have no access to a Construction Accountant, not even for quarterly check-ups #5 You don't have a formal documented Business Plan with a budget and projections   If you have already raised some or all of these red flags, no worries; we can help you fix most of them. Bankers love chatting with accountants because we speak the same language as homebuilders, who love talking with sub-contractors and building material suppliers. After all, you all speak the same vocabulary. The Risk Management Association (RMA) 1914-  the Robert Morris Club (RMA) was formed to help businesses and bankers exchange credit information. It was named after Robert Morris, a signer of the Declaration of Independence, and was believed to be the primary financier of the Revolutionary War. The RMA developed several tools; among them was a system of Ratios that we use today to study the financial statements of all companies in all industries. The banking and lending industry has enormous databases and artificial intelligence software from places like The Risk Management Association, allowing them to separate reasonable contractor risks from bad ones. It generates recommendations based on algorithms much more complex than any gambling casino and with a much higher payoff. One of the keys to getting a banker, lender, or bonding company to consider your construction company for financing is how your financial statements are presented. In particular, your construction company's Profit & Loss and Balance Sheet. A banker, lender, or bonding agent logs into their RMA account, fills out electronic forms, answers questions about your construction company, and inputs specific numbers in specific blanks taken directly from your construction company's Profit and Loss and Balance Sheet. Any construction accountant knows precisely how to set up QuickBooks correctly for this process.  If a contractor gives their banker, lender, or bonding agent a set of financial reports that do not conform to the RMA requirements, they may or may not try to extrapolate the numbers needed using Excel or some other program. In most cases, they are polite and thank you for "applying" before giving you the "We will let you know as soon as we know anything" speech. I know this because I have heard it from many bankers, lenders, and bonding agents who are frustrated. After all, they know you are an excellent client and know you are a person of integrity who can be trusted to pay the loan back on time, with all the interest. The RMA and other reports show where your contracting company stands concerning other contracting companies serving similar geographic and demographic markets. Each major category, Sales, Cost of Goods Sold, Overhead, Other Expenses, and Other Income, is rated on a scale of top 25%, middle 50%, and bottom 25%. Ideally, all the numbers on your Profit and Loss and Balance Sheet fall somewhere in the middle 50%. Whenever a contractor "forgets" to declare all their income or "overstate their expenses," it will appear as a red flag. Finally, a Z-Score is compiled, a formula for predicting bankruptcy. Edward I. Altman published it in 1968. The procedure may be used to predict the probability that a firm will go into bankruptcy within two years. Although not 100% accurate, it is a valuable tool, similar to a tape measure, which is not 100% accurate yet still practical. This is why sometimes a contractor with excellent credit cannot get a loan or line of credit, and yet another contractor with only good credit can get financing. Prioritize these three things for a smoother loan application: Your business risk profile One of the most essential parts of any business loan application is demonstrating to a lender that your company can make regular payments and repay the loan in full. If your business is profitable, you can show you're at low risk by presenting cash flow statements, a detailed business plan, and your good credit history. Some of the most common reasons a bank won't grant a loan to a small business are a lack of security (e.g., no business assets), a poor or non-existent credit history, business inexperience, and a weak business plan. Know your credit score It's highly recommended that you review your credit score before you apply for financing. That way, you'll know whether it might be better to wait until you're in a better position to qualify. Check that your report is complete or free of any errors that can affect your score. Your credit report includes your payment history for credit cards, equipment leases, mortgage or office rentals, electricity, phone fees, and other business expenses. A simple omission – say your internet provider, whom you always pay on time, isn't included in your payment history – can result in your credit score being lower than it should be, so be sure to correct any errors immediately. Before you apply for financing If you suspect a lender will decide your business is too high risk for a loan, or you've been denied financing, apply for business credit instead. Your spending limit may be low, but a credit card will allow you to build a good credit history. Pay off your balance – or, at the very least, make your minimum payment each month. Keep up with your other financial obligations, such as personal loan payments, rent, leased equipment, and any income taxes owed. Apply for a loan in six months to a year, and you'll have a much better chance of approval. Before you apply, be sure you have all the documentation needed to support your loan application. Include in your portfolio copies of business banking statements, financial reports, a detailed business plan including projections, and a well-researched marketing plan. It would be best if you also were prepared to discuss with a lender why you need to borrow the amount you're asking for, the term length, and how your business can afford to repay it. Make a strong case for funding by demonstrating profitability, a good credit history, and a solid business plan, and you'll be in an excellent position to qualify for the funds you need to grow your business. Final thoughts Hopefully, you have gained insights into the banking, lending, and bonding industries. Profitable contractors and construction company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time, and now you know about it too. Reach out to me and let's chat about your construction business; whether you need a little help or a lot, I'm just a message away. About The Author: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

Ronald J. Baker is the founder of VeraSage Institute, a reformed CPA and cost accountant who has changed his mind on the value of timesheets and cost accounting. His quest is to bury the billable hour and timesheets.    He is also a radio talk-show Host, The Soul of Enterprise: Business in the Knowledge Economy heard on www.voiceamerica.com.  In this episode, Ron let us know why he changed his mind when it comes to the use of timesheets when setting up pricing. Hear his reasoning about why you should also get rid of timesheets. He offers profound insights, as well as examples and explanations, into how certain pricing value and cost models are appropriate for particular industries.    Why you have to check out today's podcast: Learn why many companies in accounting and the automobile industry are switching to subscription pricing Discover how timesheets cause leaders to focus on the wrong metrics, especially in pricing and value setting No timesheets? Is it possible?    “Even if you're a solo entrepreneur, have somebody else help you with pricing because it will put a spine in you and you won't give yourself away.” – Ronald J. Baker   Topics Covered:  02:44 – Talking about four defenses for timesheets in relation to Pricing  04:41 – Taking into consideration the Cost of Goods Sold in setting the price  07:22 – Difference between a metric and measurement type of cost allocations  09:09 – Opportunity Cost and Sunk Cost  10:39 – Is time really considered in setting up pricing?  14:31 – Project management as a way of making better decisions in the future  15:47 – The best advantage of niching your expertise on  18:31 – The start of subscription pricing in the accounting world  21:30 – Insurance classified as subscription pricing  24:08 – What's the best thing about hiring an accounting firm rather than accounting staff for your business  27:48 – His thoughts on cars leaning towards a subscription model  29:50 – Ron's pricing advice   Key Takeaways:  “Keep in mind that I don't need to see timesheets to know your firm's costs. I need to know, I need to see your GL, your income statement and I need to know what your labor and all of that is. I'd much rather track revenue per person or labor cost per person, profit per person in a professional firm because that's a true measurement.” – Ron Baker  “Even if they're just starting out as a sole solo. Don't have any employees. I still think they can put a price on things consistent with their opportunity cost and what they want, willingness to accept and function fine, and this is an integral part of this, as long as they step back after the job is completed and do an after-action review and learn from it.” – Ron Baker   “If you're niched, if you specialize, it's much easier to know what something's going to take once you build up some experience.” – Ron Baker  “A subscription model is a way to lock customers in for life. So in value pricing to Oh you're pricing, not the customer. And this is the subtle difference, but bear with me, you're pricing the relationship and you're pricing the portfolio because you're looking at it as a portfolio rather than a project or just a customer. You're actually looking at the entire portfolio.” – Ron Baker  “We're too busy. I think we confuse being busy with being effective and being profitable. And I'll see a correlation there.” – Ron Baker    People/Resources Mentioned:  Bain & Company: https://www.bain.com/ McKinsey and Company: https://www.mckinsey.com/ Porsche: https://en.wikipedia.org/wiki/Porsche Canvas + Fair: https://drivecanvas.com/ Ed Kless: https://www.linkedin.com/in/edkless TSOE Episode #200: Interview with Reginald Lee: https://www.thesoulofenterprise.com/tsoe/lee2 Lies, Damned Lies, and Cost Accounting: https://www.amazon.com/Lies-Damned-Cost-Accounting-Management/dp/163157065X   Connect With Ron Baker:  VeraSage Institute: https://verasage.com/ LinkedIn: https://www.linkedin.com/in/ronbaker1 Twitter: https://twitter.com/RonaldBaker Email: ron@verasage.com  The Soul of Enterprise: https://www.thesoulofenterprise.com/   Connect with Mark Stiving: Email: mark@impactpricing.com    LinkedIn: https://www.linkedin.com/in/stiving/

This Podcast Is Episode Number 540, And It's About Key Financial Concepts For Construction Company Owners Not everyone knows construction accounting, and it is easy to assume all accounting is the same. Even if you have outsourced your financial functions, as a small construction business owner, having a solid understanding of critical financial concepts is crucial to work with your advisor and 'speak their language". This article outlines several essential concepts that every small business owner should know.   Construction is a tricky business, and people's failure is expected. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. We noted these lessons years ago, owning and operating our construction company. By building a system and gaining insight from us, you can pick up from our mistakes, which you don't have to go through and can start avoiding before it comes crashing down.    Get that one thing working, then move on to the next one. What is the most annoying thing you can quickly fix? We talk about accounting because that is our primary focus. Start with the basics: Open a business checking account. Use a dedicated credit card for the business (if using a personal card). Create invoices, present them to your customers, collect the money, and get it in the bank (Do you have an easy way for your clients to pay you?). Collect the money ASAP because, without cash flow, you are out of business. Basics of income and expenses As a construction business owner, you must understand how you generate and spend money. This way, you can maintain fiscal responsibility while also promoting business growth. Income statements (Profit & Loss) versus cash flow Business owners should always stay on top of the latest cash flow analyses and projections to make smart short-term financial decisions. Remember, a P&L doesn't tell you if you can pay your bills or how liquid your business is. Keep that in mind! Operating cash flow Understanding a company's operating cash flow is vital for assessing its performance and cash runway. Gross sales versus net profits As a small business owner, paying attention to sales and expenses is vital to ensure a healthy and well-managed business. Remember, gross sales don't equal net profits. Understanding every expense, knowing the industry averages, and having enough cash to thrive long-term are crucial. Reading a balance sheet It's important to understand the line items on a balance sheet. Taking a deep dive into these details can provide valuable insights into your financial well-being. Soon, you will instinctively know if something doesn't look right. Return on equity This concept helps us decide whether to keep investing in the business or look into other investment options. You see, there are always opportunity costs to consider for every investment. Materials A construction contractor may purchase material and resell it to their customer. Thereby thinking it is a reimbursable expense. (You lose money when doing this).  Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Every line item on a customer invoice is ALL INCOME. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Washington State, for instance, has a clear explanation.  Purchases for the material are Cost of Goods Sold or are expenses if you are short-cutting your accounting. I have seen financial statements backed out because they will reflect reimbursable income as a negative number, thereby showing it as a deduction. (The net effect is double dipping on the expense side.) The cause is that the accounting software is not correctly set up.  Cost of goods sold It's imperative to clearly understand the cost involved in producing your products or services. If you're unsure how much it costs to provide your services, it's hard to know how much you'll have left to cover your overhead expenses. For example, a material receipt arrives at the regular bookkeeper's desk from a lumber supplier, and they open the QuickBooks contractor file, look up the supplier to determine how the previous lumber purchase was coded, and proceed to code the new transaction the same way. The problem is that each transaction is unique and could go into any of a dozen accounts or item codes depending upon whether it is a direct cost, indirect cost, WIP, retention, warranty, overhead, administrative, or other costs, or simply an expense. The cumulative effect of these bookkeeping errors in one month can do enough damage to the financial and job cost reports to bankrupt a contractor eventually. Accounts payable and accounts receivable Managing cash flow through digital tools for accounts payable (AP) and accounts receivable (AR) is crucial. After all, cash is king for small businesses! No - the company with the most Accounts Receivable or Accounts Payable does not win a prize. Accounts Receivable means your customers owe you money. Accounts Payable means you owe money to your suppliers. Net Profit is the money left over. You want lots of Net Profit! You are not a banker! Stop borrowing money using your credit cards, Loans, and Lines of Credit, then finance customers' projects at 0% interest. Working capital Monitoring working capital is vital for ensuring the business has enough funds to operate smoothly. You can get loans if you can't get enough working money because of seasonality or other external factors. A working capital ratio between 1.2 and 2 signifies a healthy business to lending companies. The operating capital ratio shows the percentage of assets to liabilities, i.e., how often a company can pay off its current liabilities with its existing assets. The working capital ratio calculation is Working Capital Ratio = Current Assets / Current Liabilities. We are deeply passionate and committed to the construction industry and want to support you, our clients, and our readers to achieve your definition of success. Whether you're a contractor, owner, spouse, business professional, bookkeeper, or accountant, we understand your frustrations because we've been where you are now and are here to help. We have proudly produced 12 classes in our Construction Accounting Academy. Each course was designed for QuickBooks users from all levels - Beginner to Experienced. Our goal is to provide the student with suitable and valuable information to build a construction accounting system specific to their type of construction business and company role. As with every type of business, having the right tools can help you work efficiently and effectively. The key to your business profitability lies in understanding the critical concepts of construction accounting. Now that the tools are available online and accessible 24/7, it's up to you to leverage and implement the power of knowledge. To wrap things up A solid understanding of these key financial concepts enables you to make informed decisions, effectively manage your finances, and strategically drive your businesses' growth and long-term success. With financial acumen, you can identify expansion opportunities, mitigate risks, and build a sustainable foundation for your business ventures. Don't navigate your finances alone – we're here to help. About The Author: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

In episode #9, I address your SaaS cost of goods sold. I review a lot of SaaS P&Ls, and I'd say 90% are set up incorrectly. It's so important to set up your P&L correctly to manage your business and calculate important SaaS metrics. - What should be included in COGS? - Your revenue streams dictate your COGS departments - Why is COGS important? - Expectations of COGS - It starts with your chart of accounts and dimension coding - Avoid the big bucket of expenses Blog Post on SaaS COGS: https://www.thesaascfo.com/what-should-be-included-in-saas-cogs/ Join Ben's SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray Subscribe to Ben's SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page

The terminology. The rows and columns. The crunching of numbers.You either love spreadsheets and financials or you hate them.There is rarely anyone in-between those extremes.Today we are going to take a dive into financials and explain cost of goods sold expenses.Come check out my new group, Service Business Academy, where you can ask, and we will immediately solve, the most pressing problems you are facing RIGHT NOW. To get the Zoom and other details, just send a quick, introductory email to hello@serviceindustrysuccess.com with the word 'group' in the subject.Learn more about Brian's training and coaching at: https://www.serviceindustrysuccess.comSchedule a complimentary, one-on-one, session with Brian to tackle your most pressing problem today at: https://calendly.com/success-session-with-brian/45min

  Extremists come in many forms.  Some carry a weapon.  Others carry around a myth that can be just as harmful.  While in their previous best-selling book “Merchants of Doubt” Naomi Oreskes and our guest, Erik Conway, explained how four physicists laid the groundwork for climate change denial by arguing against government regulation, in their … Continue reading EP 668 We Are Now Paying for a Bill of Goods Sold By Free Market Extremists →

This Podcast Is Episode Number 528, And It's About Construction Accounting Concepts You Can Benefit From Today   As a small business owner, you know that managing your finances is crucial to the success of your business. But with so many accounting principles and practices, it can be challenging to know where to start. That's where we come in! This guide will break down the essential accounting principles that every small construction business owner should know. We'll discuss how these principles can help you keep track of financial transactions, create accurate financial statements, and make informed decisions for your business. So, let's dive in, shall we? Why Are Accounting Principles Important for Construction Businesses? Accounting principles are the foundation for any successful business. They provide a uniform framework for recording and reporting financial transactions, ensuring consistency and accuracy in your financial records. By adhering to these principles, you'll be able to: Make better financial decisions based on accurate and reliable data Monitor your business's performance and identify areas for improvement Meet legal and regulatory requirements for financial reporting Build trust with investors, lenders, and other stakeholders   All Accounting Uses The Same Accounting Equation Assets = Liabilities + Equity Regarding construction accounting, several concepts can be highly beneficial to understand. Here are a few you can start taking advantage of today: Construction Accounting Vs. Regular Accounting Not everyone knows what construction accounting is, and easy to assume all accounting is the same. Construction Accounting Is Used - When the entire place of business is packed up and taken to the customer. In essence, you are selling, assembling, delivering, and installing a customized product from a mobile shop on location. Think of it like shooting a movie on location without all the glamor, resources, and money to go with it. Why is there confusion? From a tax standpoint, most construction projects are all lumped together, and after the Cost of Good Sold, Expenses, and Depreciation, you either made money or didn't. The Tax Accountant rolls the numbers to compute the annual tax return. Therefore, if the information is not needed to be broken down for taxes, then the Tax Accountant is not concerned. As the Construction Contractor paying the bills, you are constantly concerned about which jobs are "Making Money or Losing Money." "Why does it seem like I am watching the money fly by and zooming out of my checking account? It never seems like there is any money left over!" Materials A construction contractor may purchase material and resell it to their customer. Thereby thinking it is a reimbursable expense. (You lose money when doing this).  Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Every line item on a customer invoice is ALL INCOME. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Washington State, for instance, has a clear explanation.  Purchases for the material are Cost of Goods Sold or are expenses if you are short-cutting your accounting. I have seen financial statements backed out because they will reflect reimbursable income as a negative number, thereby showing it as a deduction. (The net effect is double dipping on the expense side) The cause is that the accounting software is not correctly set up.  Cost Of Goods Sold (COGS) It appears regular bookkeepers over their heads with construction accounting are trying to figure out how to input new QuickBooks transactions by copying previous transactions. This is not an issue with regular accounting because there is only one or two costs of goods sold accounts (COGS), no direct COGS, no indirect COGS, no Work-In-Progress (WIP), no retention, no job costing allocation to consider, and only one customer "cash sale" in addition to several other variables involved in construction accounting.  For example, a material receipt arrives at the regular bookkeeper's desk from a lumber supplier, and they open the QuickBooks contractor file, look up the supplier to determine how the previous lumber purchase was coded, and proceed to code the new transaction the same way. The problem is that each transaction is unique and could go into any of a dozen accounts or item codes depending upon whether it is a direct cost, indirect cost, WIP, retention, warranty, overhead, administrative, or other costs, or simply an expense. The cumulative effect of these bookkeeping errors in one month can do enough damage to the financial and job cost reports to bankrupt a contractor eventually. Another example is if the bookkeeper generates job costing reports that are off by 10%, it could cause the contractor to make radically different decisions based on what they believe about the job costing reports. If the contractor believes the company is undercharging, they may raise bid prices, lose jobs, eventually run out of cash, and file bankruptcy. If the contractor believes the company is overcharging, they may lower bid prices, lose money on all jobs, eventually run out of cash, and file bankruptcy. Many bookkeepers have lost their jobs and are freelancing as Jack-of-All-Trades and Master-of-None bookkeepers, doing whatever work they can find, and I understand that everyone needs to eat. I would prefer they avoid contractors and stick to regular bookkeeping like retail stores. The net result is that more contractors are going out of business due to inadequate financial and job costing reports just when construction demand is about to grow. Fix the giant boulders one at a time. Get that one thing working, then move on to the next one. What is the most annoying thing you can quickly fix? We talk about accounting because that is our primary focus. Start with the basics: Open a business checking account. Use a dedicated credit card for the business (if using a personal card). Create invoices, present them to your customer, collect the money, and get it in the bank (Do you have an easy way for your clients to pay you?). Collect the money ASAP because, without cash flow, you are out of business. No - the company with the most Accounts Receivable or Accounts Payable does not win a prize. Accounts Receivable means your customers owe you money. Accounts Payable means you owe money to your suppliers. Net Profit is the money left over. You want lots of Net Profit! You are not a banker! Stop borrowing money using your credit cards, Loans, and Lines of Credit, then finance customers' projects at 0% interest. Final thoughts Becoming knowledgeable in accounting principles has the power to transform the way you run your construction business. Understanding and implementing these concepts in your construction accounting practices can improve your financial management and set your business up for long-term success. Fast Easy Accounting does the bookkeeping, accounting, and payroll and offers business coaching for small, brand-new Construction Contractors, General Contractors, Trade Contractors, and Handymen across the USA, including Alaska and Hawaii. Do the parts only you can do; leave the rest to us. You are never too small for us to help, and we can help to begin with your first day in business. Schedule your free consultation here. About The Author: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

Networking is a tool for meeting people. It can be performed online, or in person. It has real costs of time and often some money. There are so many free and paid options. You can find lots of free-flowing or slightly structured meetings. You can also find highly targeted ones that are totally structured like a BNI or Vistage. Finally, there are those one-on-one meetings like I had with Chip and Sarah. I also do at least 2-3 get-to-know-you Zoom calls each week. All of those have one cost that is either overlooked or avoided. TIME! How much does it take to acquire a new customer? It's a very findable number if you add up all the tools and expenses you pay for. Often overlooked is the staff or C-level time to network, have a one-on-one meeting, and talk with referrals. We tend to lump the time we spend on networking, relationship building, and meetings in general as the Cost of Goods Sold. It's generally recorded as salary but rarely tracked as a system. Documenting interactions and meeting with your team to discuss that can do more than create business, it can help you all get the pulse of the current business climate and the community at large. “Technology is a compulsive and addictive way to live. Verbal communication cannot be lost because of a lack of skill. The ability to listen and learn is key to mastering the art of communication. If you don't use your verbal skills and networking, it will disappear rapidly. Use technology wisely.” – Rick Pitino In this episode, we will discuss how networking can be tracked as an ROI in your business! Want To See How To Market BETTER? - Click Here

In business, money is constantly moving. A cash flow statement is a bit counterproductive.  As the cash flows, we can see trends and movement.  The moment we snapshot the flow of cash into a static cash flow statement, the cash stops flowing. Taking a snapshot of a rushing river means the river is no longer rushing; it is still.  You can clearly see the river, the level, the color, and the shape, but the rushing-ness of the river is lost in the stillness of the snapshot. The mass publishing of the now infamous story of Chris McCandless documented in John Krakauer's book In The Wild has led to a surge in the number of me-too explorers who wish to track McCandless's fateful footsteps.  To reach the famed bus that McCandless made home explorers must trek through and across the Teklanika River.   After safely crossing the river many inexperienced explorers fail to take into account that rivers trough and crest often at unpredictable times leading to many of these post-McCandless explorers stranded in need of rescue, or in some cases left for dead.  The metaphor is not much different in the trough and cresting of the cash in your business.   With a little preparation, you can begin to have greater insight into the reality of the future tides of the river of your business.   Static financial statements and reports are incredibly valuable, including the cash flow statement, and yet still can be of only momentary help to a business owner who lives in a dynamic, constantly moving world.   The statements and reports themselves need a means of tracking the flow, the peaks and troughs, and the standard deviation of that volatility so we can make a point-in-time-decision in the midst of a constantly flowing market. The Executive Leader is looking to create proximity to motivate a team to pursue the named future you see, therefore must be able to cut through the financial fog and pay attention to reliable instruments that are always calibrated within the values of the business. Just as in an airplane cockpit, the pilot maintains a panoramic view of the horizon (vision) the Executive Leader must also build in a panoramic view by which to view the financial health of the business that is tracked with repetition, predictability, and meaning. Three tools will aid the Executive Leader in having such a panoramic view past, present, and future. First, the well-tested profit and loss statement (P&L) provides a still shot of what has-been with one major caveat; the data you retrieve is only as helpful as the data that has been input. The P&L helps you to understand your Cost of Goods Sold which in turn immediately helps you to understand what Mike Michalowicz calls your Real Revenue.  Your COGS is a number that theoretically goes away if sales goes to zero, everything “below the line” would continue as-is and gives you a great snapshot into your other expenses or overhead. A great monthly exercise is to simply march down the P&L and see if any of the percentage numbers have changed from month to month, quarter to quarter, or year over year.   The net income number on the bottom of the P&L is nice, but let's be clear, it is not an actual reflection of how much cash remains in the business.  It drives me crazy when someone says, “Congratulations, you made X in net income.”  Your net income seems to be more advantageous regarding your taxes than it does in showing your actual cash profitability (the funds you really have access to).   You could not take your P&L to the bank and ask to withdraw your net income…I know it's silly to say, but that is how many think of the net income number.  Your P&L is more of a value of past “actuals” related to income, real revenue, costs, and expenses…it is the history less for your business. For the present, merging two ideas has been of significant value to so many business owners making the pivot to Executive Leadership.  The first of those two is the subdivision of cash entering the business.  When a dollar comes in, that dollar should be physically subdivided into separate accounts or expense homes where you are able to see what cash is actually available to the business for real-time decisions. You might begin to feel a draw to defend the balance sheet, or the cash flow statement, or a simple spreadsheet as a means to do the trick.  Here is the major problem, most business owners and executive leader (heck, most accounting professionals) struggle to keep up with the daily tracking of cash on a spreadsheet.  Also, the balance sheet or cash flow statements are static, not following the flow of cash (different meaning than a cash flow statement).   When the cash is subdivided into multiple bank accounts the decision-making for the executive leader has a much faster turnaround because whatever is in the account is what we have to work with, period. Each week, a team member documents the balances of those multiple accounts and begins to watch the peaks, troughs, and up/down deviations.  Sure, you can always log into your bank account or quickbooks to check today's cash balances…but what about watching those balances at hundreds of waypoints over the years to see trends?   The Level Two Dashboard is a tool (Level One is your online subdivided bank accounts) that requires about 5 to 10 minutes of work each week and provides hours of time saved and in most cases a retention of money earned without losing it to the thief of leakage.  The more you have access to, the more prone to leakage.   The Level Two Dashboard also has options to track receivables, near-term payables, and a water-level number called the all-in/all-out number. This number answers the question, “if we grabbed all of our available cash, grabbed the receivables we are owed, then paid all of our tax liabilities, and paid our near-term payables (not long term loan balances)...then this is the money the business should have access to.” The goal of the all-in/all-out is not to get stuck on one week worth of data, but instead to watch the flow of that number over time and determine an appropriate “water level” of your business.   The P&L will educate you on the past, the subdivided bank accounts and Level Two Dashboard will educate you on the present, and your future can be planned by building a simple budget ironically based on your past P&Ls. A simple and well-built budget will take a forward-gazing future look towards the vision of the business.  What good is a budget if it is being spent on items that are steering the business away from the vision, or in haphazard directions?  A budget will have line items and categorized for things that will push you and the the business towards the vision.  If a line does not align with a healthy vision, then it is simply removed from the budget. A simple and well-built budget will take a backwards-gazing historic look towards the previous spending of the business.  Starting a budget from scratch without looking at prior spending is akin to a amnesia-riddled pilot learning how to fly a plane everytime she climbs into a cockpit.  That is not a plane you want to be on!  The quickest way to look at past spending to simply run a profit and loss report from prior years making sure that the expense categories are visible. Finally, a filter for a simple and well-built budget is making the appropriate time to actually sit down and build your budget.  Have you ever jumped out of your seat in the airport terminal and sprinted into the Zone 4 boarding line for your flight the second your boarding announcement came across the crackline terminal speakers?  All that sprinting just to stand their and wait in a line akin to a cattle stall.   That is NOT how we want you to budget.   Instead, block the time, maybe no more than 1-2 hours to sit, review your vision, review your previous profit and loss reports project what you think you might need in each category in order to hit your near term goals (see 12 Week Plan module) and your long term vision. The Executive Leader will make proximity towards the past P&Ls, the present subdivided bank accounts and Level Two Tracking Dashboard, and plan the future with a simple annual budget.  A constant awareness of your triangulated (past, present, future) financial position will allow you to offer rapid motivation that emboldens your team to pursue the named future you see.

State of the Cloud 2023: Top Five Predictions:#1: Efficient GrowthAdopt new solutions to gain control of their Cloud and SaaS spend, including the infrastructure cost to deliver SaaS Solutions. Tools include Cloud FinOps tools, SaaS Spend Solutions, and engineering productivity tools to improve R&D processes.One of the areas of focus is on Cloud Spend as a way to manage the Cost of Goods Sold and thus increase Gross Margin which sets the ceiling for Saas profitability. Public SaaS companies with Gross Margins under 50% have a hard time driving Free Cash Flow of 20% or greater which is critical to enterprise value multiples.Some examples of tools to gain control of Cloud Spend are included in the Bessemer Ventures technical playbook of 40 tactics to drive profitable growth - this playbook can be found on Atlas on the BVP.com website - the report is called the "CEOs tactical guide to drive profitable growth".#2: Climate Software will drive the Green Energy TransitionWith the increase in consumer activism and government regulation, the green energy revolution is here. To support this green economy, cloud software that is tailored made to power the transition to green energy will explode. Examples are software dedicated to solar, infrastructure, sustainable design, and fossil fuel infrastructure transition.#3: Initial value of AI will be to the userThe AI and Large Language Model business ecosystems are evolving quickly. Bessemer believes the ultimate winner is the user to increase individual productivity at work and in their personal lives. AI research is now democratized so end users can have access to and build upon the latest AI capabilities.One example is ChatGPT being released to the general public and acquiring over 100 million users in the first three months - the faster-growing internet site ever!!!Bessemer calls the current AI revolution a B2C2B motion. This highlights the consumer excitement about the benefits of AI, which will in return bring these tools and techniques to the corporate workplace.#4: The application layer is where the most impact from AI will happen firstDue to the democratization of access to AI, the power of AI will be available to any company, that can embed AI without their own AI team. This will make horizontal B2B SaaS companies to provide AI driven workflows and processes without the need for a large internal AI development team.With the number of transactions in many SaaS platforms, the opportunity to accelerate the insights to enhance business process efficiency.#5: AI companies will grow twice as fast as traditional B2B Cloud companiesBessemer predicts the time the best AI companies will require to grow from $100M to $1B will be 50% faster than the historic fastest growers like Canva, Zoom, and Twilio. That is truly impressive as these companies scaled from $100M to $1B in four years or less!If you are a student of the Cloud industry or just SaaS-curious about where the industry is heading - the Bessemer Venture Partners "State of the Cloud 2023" is a great read and this podcast discussing the top five predictions is a must-listen!

The Alexander Group works with many of the leading companies in the B2B SaaS industry, and I was recently joined by Ted Grossman, their co-lead of the technology industry practice, and Davis Giedt, Director of Research and Analytics.Based upon Ted and Davis' unique insights and understanding of B2B SaaS due to the discussions and data from over one hundred customers, coupled with their historic Sales Compensation research and benchmarks with has become an industry standard.My first question was how has the use of SaaS metrics evolved. Ted's perspective is the core metrics have not changed that much over the past few years - rather it is the weight that is placed on specific metrics, especially growth vs profitability. As an example in 2021 and the first half of 2022, the weight was much higher on growth rate versus profitability metrics. One example is the Rule of 40 has increased in importance as measured by R-Squared by 3x over the last 6 months. As such "Margin + Growth" is much more balanced in 2023.Ted highlighted "expense to revenue" as a top priority at the macro level. This is also a very easy metric to benchmark against the industry. Then you can dive down into more granular revenue growth efficiency metrics such as "Profitability by Sales rep. Other things like the CAC Payback Period which measures the amount of time to pay back the acquisition of a new customer. Net and Gross Retention Rates are also high-priority metrics to understand the efficacy of retaining and expanding revenue with existing customers.What about the importance of changing the mix of revenue growth from new customers versus existing customers? The story varies in every company and depends on company-specific attributes such as do they have multiple products, or do they have a product that can expand usage to additional users, departments, or business units within an existing customer.When I asked Davis the "top" metrics he prefers, they included:Sales and Marketing expense to revenue which tests for every dollar invested in revenue growth, how much is returned on both a new and top-line revenue basis. Davis shared a 35% - 40% S&M expense to revenue as a good benchmark for growth companiesCost of Growth, sometimes known as the SaaS Magic number measures the top-line revenue growth versusSales and Marketing investment, which has a range of .5 (poor), .75 - 1 (good), and > 1 (best)CLTV:CAC measures the amount of Gross Profit (or Revenue minus Cost of Goods Sold) generated against the revenue a new customer generates over the life of a customer. A CLTV:CAC ratio of 3x is good, though has been increasing over the past 2-3 years. CLTV:CAC ratio is a long-term ROI measurementNext, we discussed the topic of "consistency of metric calculation" when using industry benchmarks. Davis highlighted that for their clients they use one standard metric calculation formula to ensure when they are benchmarking it is an apples-to-apples comparison. One specific example was if you are trying to measure the efficiency of growing new customer ARR versus existing customer growth ARR, things like a "time study" may need to be conducted to properly allocate expenses to the pursuit of each growth ARR type.If you are a B2B SaaS company leader, the discussion with Ted and Davis provides some unique insights and perspectives that only come with the unique visibility they have across hundreds of leading B2B companies.

We're back with another episode of Profit & Loss story telling, the new innovative way to talk about your P&L. Last week we wrapped up our sales stories and moved onto Cost of Goods Sold (labor, supplies, fuel, damages and repairs). If we get through those stories then Marketing is next! In this episode, we dive into all kinds of stories about business that we learned the hard way, unforgettable mistakes and funny ones. Listen and you might pick up a thing or two. Time for a beer... To know more about BlueSkies Admin Services, visit: https://yourblueskies.com/

Today, Sachin interviews April Stroink on our money journey as practitioners. They discuss how April came into coaching practitioners on finances after being trained as a financial advisor. April shares how her baby benefitted from health practitioners when medical care was powerless to help her. April talks about how a holistic view of well-being is similar to a holistic view of financial well-being, which she calls “wealthcare,” and how she began coaching practitioners. The conversation covers how little entrepreneurs know about finances, and how they can put together a financial system they can manage with the right team. Listen in for advice on fixing your finances while you still can.   Key Takeaways: [1:02] Sachin welcomes listeners to Perfect Practice. Today, Sachin is speaking with April Stroink. Sachin introduces April and her work of coaching about money and thanks her for joining the podcast.   [3:24] April describes her work as a “wealthcare” practitioner. Your financial well-being is closely connected to your physical health, mental health, and close relationships. It's important to understand what's happening in our finances if we want to get healthy.   [3:51] Finance is one of the pillars of overall good health and well-being. It is one of the major stressors for most people. When the body is under stress it releases cortisol. Stress also impacts sleep. A lack of sleep impacts health. In Canada, where April lives, money stress is the number one reason for relationship breakdown, as well.   [4:57] April was trained as a financial advisor to get people to retirement with a safety net. She was not trained in behavioral finance. Money is emotional and we have biases about it. People behave differently with their money than with other areas of their lives.   [5:56] April worked with clients who told her they were living paycheck-to-paycheck even though they were making a good income. The more they made, the less disposable income they had and they were drowning in debt from student loans and business loans.   [6:26] In 2017, April shifted her practice away from “assets under management” to helping people on the coaching side of things to help people understand their spending behaviors and their emotions around money so they can reach their financial goals.   [6:56] Along the way, April has been very in-tune with her “wealthcare” and healthcare and the health of her family. Her nine-month-old daughter was constantly sick. Antibiotics made her sicker. April tried naturopathic medicine and worked with an ND as part of her healthcare team. Within 48 hours her daughter was like a new child.   [7:54] April's classical financial training wasn't serving her clients. She needed a more holistic view to look at the entire picture of their wealthcare, as naturopathic doctors and functional medicine professionals use in treating patients. April's approach to wealthcare is similar to this healthcare community. So she started to work financially with the community of practitioners.   [9:15] Numbers don't lie. When you use good data, it takes gives you a solid foundation to work past the emotion of the equation. April asks her clients to step into the Chief Financial Wellness Officer role for their firms. There are three attributes of a CFWO: 1. To be fearless about their numbers, 2. To be curious about their finances, and 3. To be passionate about their numbers.   [11:36] April will show a client the mechanics that work with the cognitive biases around money. She says the biggest thing that she helps clients with is increasing and boosting their confidence when it comes to their numbers and their finances.   [12:57] We have to realize Parkinson's Law that demand always meets supply. If we have a month to do a task, it will take a month. If we have a week, it will take a week. The same happens with our money. As business owners, we have the axiom that Sales minus Expenses equals Profit. As we grow, we can increase our revenue but our expenses also increase.   [13:50] You need to take a deep dive into the Costs of Goods Sold. What is your Gross Margin per unit of everything that you are selling? From there, you want to have as much margin as possible to run your operation.   [14:19] April conducts regular expense audits with her clients. She categorizes expenses into three buckets. The first bucket is “Key” (Key) Expenses that drive profit, including staff, software subscriptions, and marketing. In a business crisis, such as a pandemic, do not cut profit-driving expenses first. Consider the effect of any cut over 10 days, 10 months, and 10 years.   [19:37] The second bucket is “R” (Recurring) Expenses such as subscriptions and insurance. Research your insurance providers and you may be able to cut the cost for the same coverage. Look at all your systems and subscriptions with a critical eye regularly.   [21:20] The third bucket is your “U” (Unnecessary) Expenses. This is where it gets down to emotion. It's helpful to have a third party who is committed to the success of your business but is not emotional about your business, taking a look and asking, “Is it necessary to have all this furniture or all this office space?”   [21:57] It's not what you bring in, it's what you keep. Be diligent about regular expense audits. Sachin's wife goes over the credit card receipts every month and asks “Are you still using this subscription?”   [23:52] Take a look at the products and services you offer. Have you changed the price of the offerings to keep up with the cost of goods to provide them? Which of your services are profit generators and which are profit detractors? The one you are emotionally attached to because it was how you started your practice may be a profit detractor now.   [25:50] April asks clients first, “Do you have the right people on your ‘wealthcare' team?” This includes your bookkeeper, your accountant, your banker, your lawyer, your financial adviser, or your financial coach. She wants her clients to have the right team because they need the data. Without the right data, the wrong systems may be put into place. April looks at their books.   [27:24] A lot of practitioners don't understand the role of the bookkeeper, vs. the role of the accountant, vs. their role as business owners. Just as you cannot advocate your health to anyone else, you cannot advocate your wealth to anyone else. You are 100% responsible for your business.   [28:04] Bookkeeping is not regulated in Canada. April has a list of questions for clinicians to ask when interviewing potential bookkeepers. It's important to have a proper “wealthcare” team in place so that you get the right data. Without the right data, putting the rest of your systems together is a moot point. “Garbage in, garbage out” will not help you.   [29:23] April has facilitated many courses for the Province of Nova Scotia, including “Financial Essentials 101 for Entrepreneurs.” The number one feedback she gets from the course is “I wish I had learned this when I first started my business!” If you don't have the right habits when you start your business, bad financial habits may continue and may end your business.   [30:38] April thinks finances should be learned through conversations in the home, starting at a very young age, so people don't become adults without knowing about finance and are confronted by institutions that profit from their being ignorant and in debt until they get to a place where they have to confront their bad financial habits when the money stops flowing.   [32:03] Finance should be taught in high school and as part of process management in colleges. Business owners need to be learning it immediately.   [32:54] Sachin points out that the three most profitable segments of our economy are health management, wealth management, and the food industry. The more we know, the better we can take these matters into our own hands. The powers that be are not necessarily interested in us having that skill set.   [35:40] April can be found on Instagram and Facebook @AprilStroink. People can book a free 30-minute consultation through the website Aprilstroink.ca.   [36:10] If you sign up for a free consultation call, there are some questions to answer before the call. April wants to know your impetus for calling her. What is preventing you from sleeping at night when it comes to your finances? How she can best serve you, and are you ready? She really wants to work with people who are ready to put the systems in place.   [36:53] April's mission is to eradicate entrepreneurial poverty. She wants to make sure people are ready to do the hard work. It's not easy and you do have to follow through.   [37:28] April's last words: “Wealth is very subjective. What I determine as wealth for myself will be completely different from what you determine as wealth for yourself.” April wants to unpack the definition of wealth and talk about what prosperity means to you and what a purposeful life means to you. That's what the definition of wealth comes to.   [38:28] Sachin thanks April Stroink for sharing her expertise.   Mentioned in this episode Perfect Practice Live   April Stroink April Stroink is a money coach and advisor for individuals and entrepreneurs who want clarity, ease, and abundance with their finances. Here is April's story from her website:   “Do you want to feel ease and calm around your finances? Let's see if this is familiar: You work hard and make good money…but you're still living paycheck to paycheck. You can't seem to get ahead. The money stress causes you sleepless nights (and strains your relationships). You want to find a better way to manage your debt and save for the future. AND… above all, you want it to be easy. Sound impossible? It's not. I know it's not because I've been in your shoes… As an entrepreneur who's operated and sold several profitable businesses, I've had the same challenges and dreams. I've navigated the highs and lows of owning a business and managing household finances.   “Many years ago I took over the reins of our family's outdoor retail chain. On paper, it looked pretty profitable. But in reality, we had our struggles, like most small businesses. We needed a system to plan for our expenses, our cash flow, and our taxes. We wanted to pay ourselves regularly while keeping our family business and household finances separate. It was complicated. There were periods when I felt like our finances were in absolute chaos. We had a lot of sleepless nights as we weathered economic downturns, changes to tax laws, personnel challenges, and the stresses of day-to-day family life.   “But, in a few short years, I discovered a new way of managing our business and household cash flow and spending. I completely transformed our business's profit margins. Our family business improved to the point where it was VERY lucrative, and we ultimately sold it. And shortly after that, our household became debt-free. We celebrated with a pre-paid trip to Greece! But here's the thing. Throughout the financial transformation and paying off debt, we NEVER felt restricted about our money. Even though we were managing our spending and savings, we ONLY felt freedom and abundance.   “And that's when I knew I had found something very special. Once I discovered the right tools to create financial ease and calm in my family and our business, I began sharing these systems to help others calm their own financial chaos.”   Connect with April Stroink: Website: Aprilstroink.ca Facebook: Facebook.com/AprilStroink Instagram: Instagram.com/AprilStroink LinkedIn: April Stroink   More about your host Sachin Patel How to speak with Sachin Go one step further and Become The Living Proof Perfect Practice Live sachin@becomeproof.com To set up a practice clarity call and opportunity audit   Books by Sachin Patel: Perfect Practice: How to Build a Successful Functional Medical Business, Attract Your Ideal Patients, Serve Your Community, and Get Paid What You're Worth The Motivation Molecule: The Biological Secrets To Eliminate Procrastination, Skyrocket Productivity, and Get Sh!t Done

The many cost-oriented KPIs in manufacturing accounting constitute some of the most important financial metrics for manufacturers and distributors. In this post, we look at the function and relevance of one such KPI – the Cost of Goods Sold. You can learn more about it from this episode or read the article here. More information about MRPeasy software at our website mrpeasy.com

It's time to read the story within the numbers. Tune in to find out more!   Episode Introduction:  In this week's episode of Law Chat with Girija, we are joined by Shanna Skidmore who talks to us about all things money. She tells us how to determine our hourly prices as well as guides us on efficient product pricing.   Episode Summary:  Shanna walks us through her diverse experience in the finance world as well as her struggles with entrepreneurship. She shares a lot of tangible tips to help you do better with the finances in your business.   Main Takeaways: Start your business with one niche and once your business starts to gain traction, branching out becomes easier. COGS - Cost of Goods Sold. Cost is made up of three factors: Material Cost Labor Cost Your Time When you completely understand why you charge what you charge, it's much easier to sell that pricing to a client. Wealth is not about how much money you make, it's about how you spend the money you make. Focus on the end goal and then figure out the route to get there. It doesn't have to be popular, it has to work for you.   Resources:  Where the Crawdads Sing by Delia Owens   Find Shanna Skidmore: Website: https://shannaskidmore.com/ Facebook: https://www.facebook.com/shannaskidmore YouTube: https://www.youtube.com/channel/UCTMB8So9Q5H9ameE3HX679w Podcast: https://shannaskidmore.com/consider-the-wildflowers/ Get the visual experience, watch the videocast for the episode here: https://youtu.be/xrg2-zMS3m0   Connect With Girija: Website: https://www.gbplaw.com/ Instagram: https://www.instagram.com/gbplaw/ Facebook: https://www.facebook.com/GBPLaw/   Help us mentor other entrepreneurs through the power of storytelling by rating us and leaving a positive review on Apple Podcast: https://podcasts.apple.com/us/podcast/law-chat-with-girija/id1528580730   Get the FREE Five Day Legal Audit: https://yourcontractbuddy.com/5-day-free-legal-audit-challenge/   Join Law Chat for Entrepreneurs Free Facebook Community: ​​https://www.facebook.com/groups/lawchat   Get Ready To Use Contract Templates At: https://yourcontractbuddy.com/

Today we discussed why counting calories may not be as beneficial to your weight loss goals. We also discussed annual reports, and what cost of goods sold entails. Disclaimer: This is not financial or nutritional advice. Conduct your own research. Follow me on Instagram @leonbenson2. Download, Rate, Comment, & Subscribe to the Podcast for more episodes. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/passionpurposeperspective/support

This Podcast Is Episode Number 488, And It's About Ways To Get Rid Of Construction Accounting And Bookkeeping Confusions Doing something different is hard. Do you feel like everyone else is the most brilliant person in the room, and you just don't get it? Getting into a rut and repeatedly doing the same things is easy.   If those things work, then yes, continue to do them repeatedly. The problem is when something is not working, and you continue down the same path expecting a different result. The opposite of too much change can create another form of chaos. How do you know what is broken if you change a zillion things all at once?   Looking for ways to make your job easier is the goal of all construction contractors. The last thing you want to hear from your staff or a trade contractor is, "Do you want me to do that over?" Your answer is "No!" (thundered, with many extra words). What you expected was that your staff did it correctly the first time.   In accounting, the first piece of the confusion comes from Construction Accounting Vs. Regular Accounting. Not everyone knows what construction accounting is, and easy to assume all accounting is the same. Why is there confusion? From a tax standpoint, most construction projects are all lumped together, and after the Cost of Good Sold, Expenses, and Depreciation, you either made money or didn't. The Tax Accountant rolls up the numbers to compete for the annual tax return. Therefore, if the information is not needed to be broken down for taxes, then the Tax Accountant is not concerned. As the Construction Contractor paying the bills, you are constantly concerned about which jobs are "Making Money or Losing Money." "Why does it seem like I am watching the money fly by and zooming out of my checking account? It never seems like there is any money left over!" Second, confusion always comes about the material. A construction contractor may purchase material and resell it to their customer. Thereby thinking it is a reimbursable expense. (You lose money when doing this).  Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Every line item on a customer invoice is All INCOME. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Washington State, for instance, has a clear explanation.  Purchases for the material are Cost of Goods Sold or are expenses if you are short-cutting your accounting. I have seen financial statements that are backed out because they will reflect reimbursable income as a negative number and thereby show it as a deduction. (The net effect is double dipping on the expense side) The cause is the accounting software not correctly set up.  New Construction Home Building is another area of confusion. In the mind of many construction contractors, a Spec home is any new house being built for resale. That is true; it is a New Construction House. It is a Spec Home for the Owner and Developer (who might be the General Contractor running the job). The question is on the construction accounting side.  The question to be answered is "Who owns the house?" - It is a Spec House in the accounting system for the owner. For the General Contractor who is building a New Construction Home for a Developer, it is NOT a Spec Home. Why might it seem the same as both are New Construction Houses?    If the General Contractor Does Not Own the house, then from an accounting side for that specific General Contractor, the house is a Custom Home with an owner who is not The General Contractor.  Recognize expenses when the house sells. If the General Contractor, Developer Owns the new House being built, then it is a Spec House in the Accounting System. All costs roll up into WIP (Work-In-Process) and convert to COGS when the house is sold, not before. Otherwise, expenses one year; sales the next equals taxes.   In Washington State:  All Construction Contractors working for a Spec Builder must collect sales tax on all services (labor and material) when billed from the General and Trade Construction Contractors. All Construction Contractors working on Custom homes, Residential or Commercial Projects, Large or Small Remodels, and Handyman Projects can accept reseller permits from the General Contractor. Sales Tax is billed and collected from the Owner by the General Contractor.  Contractors must collect sales tax on all retail projects, including Labor, Materials, Other. Sales tax must be collected on every line item. Customer Discounts can be given for any reason. Fix the giant boulders one at a time. Get that one thing working, then move on to the next one. What is the most annoying thing you can quickly fix? We talk about accounting because that is our primary focus. Start with the basics: Open a business checking account. Use a dedicated credit card for the business (if using a personal card). Create invoices, present them to your customer, collect the money and get it in the bank (Do you have an easy way for your clients to pay you?). Collect the money ASAP because, without cash flow, you are out of business. No - the company with the most Accounts Receivable or Accounts Payable does not win a prize. Accounts Receivable means your customers owe you money. Accounts Payable means you owe money to your suppliers. Net Profit is the money left over. You want lots of Net Profit! You are not a banker! Stop borrowing money using your credit cards, Loans, and Lines of Credit, then finance customers' projects at 0% interest. Final thoughts Money makes the business world go round. Unless you provide a service that others are willing to pay for, you will not collect money to use for goods and services you want. It costs you money when you have uncollected Accounts Receivable. A grocery store will not let you run a tab or give them an IOU for milk. Fast Easy Accounting does the bookkeeping, accounting, and payroll and offers business coaching for small, brand-new Construction Contractors, General Contractors, Trade Contractors, and Handymen across the USA, including Alaska and Hawaii. Do the parts only you can do; leave the rest to us.  You are never too small for us to help, and we can help to begin with your first day in business. We are looking forward to being of assistance. Schedule your free consultation here. About The Author: Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

Welcome back! On this week's episode I will be discussing Misapplication of Forecasted/Projected Revenues and Operating Income which is a common mistake that is overlooked in many business valuation reports. Tune in to this episode to learn the importance of through investigation.

This episode of The Inventory Nation Podcast looks at veterinary practices through the prism of MBA best practices. Host Nicole Clausen interviews Drew Bartholomew, Chief Operating Officer at Vetcelerator, who is sharing new ways of measuring Costs of Goods Sold. With an MBA from The Wharton School, he is highlighting the business case for systematically tracking baseline factors that determine overall profit and loss. As a primer, you might want to click here to listen to Episode 65 of Inventory Nation – which covers Everything You Ever Wanted to Know About COGS! Inventory Ally, check out: www.inventoryally.comFor show notes, podcast information, and more, check out: www.vetlogic.co/podcast

It's no lie that COGs are increasing. You've heard this from us over the few weeks. In this episode, we are joined by senior media buyer, Matej, on how big brands are dealing with the cost of goods increasing. To see how you can reduce your COGs, read our latest blog post here: https://dimniko.com/blog/how-to-decrease-cogs-to-increase-margins/ And, to hear our last episode from Maryana on the state of COGs and eCom, listen to our last podcast here: https://anchor.fm/ecommercetitans/episodes/How-Brands-Can-Navigate-Their-Cost-of-Goods-Sold-e1jukg9

COGs got you down? This is an age old story we've been hearing from brand after brand. Almost every brand we speak to has something to say about their cost of goods increasing exponentially resulting in their margins decreasing. This can directly be associated with inflation and the economic environment. Regardless of our economic state, there needs to be a way to navigate your brand through this hyper-inflation. During this episode Maryana discusses how eCommerce brands are fighting head on with their COGs and how they can navigate their way through. Additional Resources: How to Decrease Your COGs Blog: https://dimniko.com/blog/how-to-decrease-cogs-to-increase-margins/

Is your inventory manager empowered to protect your bottom line? If not, then you're leaving money on the table that could be used instead to grow the healthiest, most robust veterinary practice possible! This episode of the Inventory Nation Podcast focuses on all things COGS, which stands for Cost of Goods Sold. Host Nicole Clausen, president and inventory expert at Veterinary Care Logistics, walks us through both definitions and available systems to identify exactly where your practice's costs lie, which when it comes to COGS means anything related to caring for a patient. You'll learn about a great (free!) resource for tracking exactly where these expenditures are and what percentage they represent of your revenue year over year. Having a  methodology in place provides not only a vital measure of your practice's financial health but also a means for reducing costs through lean, intentional, highly effective inventory practices. Wouldn't you rather spend resources on compensating your dedicated team than wasting dollars on expired products, diversion, mischarges, and other inventory-related vulnerabilities? Listen to this episode, and you'll know exactly why the answer is a resounding: Yes! ADDITIONAL RESOURCES:American Animal Hospital Association: Chart of AccountsVeterinary Care Logistics: @InstagramVeterinary Care Logistics: Certified Veterinary Inventory Professional ProgramABOUT VCL:Veterinary Care Logistics serves veterinarians and their teams who are frustrated that their current inventory system is not functioning correctly and are facing out of control inventory costs and improperly stocked hospitals. VCL helps veterinarians through inventory analysis, comprehensive step-by-step action plans, and thorough team member training. My clients experience great success and rave about my work because I roll up my sleeves and get dirty working with your hospital to improve your inventory as if it was my own hospital

Should your labor hours be included in your cost of goods sold? Your COGS should always include any labor hours (including your own) that are part of creating or making the products as well as installing or providing the service. Today we will take a look at an example of someone that produces their own products and then resells them. If you want to be priced correctly and have a clean profit and loss, then take a listen.   YouTube Videos on P&L that Can Help:

What to include in the cost of goods sold

Discover the secrets for taking your Amazon business to the top of the charts and the first page of results! Sabir Semerkant has found success on Amazon from every starting point imaginable and is passing along what he has learned along the way. You'll need a pen and paper as you learn about promoting your brand on Amazon the right way, how to rank higher when launching a new product on Amazon, and what you can do when it's time to sell your Amazon Business.Takeaways: Amazon is a branding platform as much as it is a shopping platform. It's imperative to use Amazon as a way to tell your brand's story to the massive amount of 24/7 traffic on the site.  Using Brand Registry by itself is not enough, you need to also optimize your Enhanced Content. The Enhanced Content serves as an editorial space for the brand, don't just upload an image and call it a day. Don't limit your dream to only ever being an Amazon seller; there are many companies and investors who are looking to acquire successful brands that sell on Amazon.Amazon sellers should factor in the freight costs of shipping their products, Amazon's commission fees, and their true FBA charges as part of their Cost of Goods Sold when determining their Gross Margin. When introducing a new product, there are two ways to rank on the first page of results on Amazon. The first way is by paying for sponsored ads on the first page. The second way is to use a “90% Discount” which helps increase product adoption.There are three key metrics from Amazon customers, recency, frequency, and monetary value. Amazon cares most about the frequency that a customer returns to Amazon to solve their problems. Subscribe & Save products are a great way to increase frequency.Selling your business comes with many hidden costs, like lawyers and certified accountants, and diverts your attention from growing the business. Until the sale is final, your focus should be on building your company.Quote of the Show:“When you are building up a business, you should not just think about selling the product on Amazon and that's your life and you're going to be doing that for the rest of your life” - Sabir SemerkantLinks:LinkedInTwitterCompany websitePodcastBlogBookWays to Tune In:Apple Podcast (Leave a Review)iHeart RadioPodchaser (Leave a Review)Amazon MusicAudibleSpotifyGoogle PodcastStitcherYouTube

SaaS Capital - I have always loved that name and followed their B2B SaaS Research for many years.Todd Gardner was a founder at SaaS Capital, which helped lead the early days of "Debt Lending" for SaaS companies. Most recently, Todd is now the principal at SaaS Advisors assisting both SaaS companies and SaaS investors during the financing process.During Todd's career, he has reviewed thousands of SaaS income statements and balance sheets which positions Todd very well for the business and financial impact of Usage-Based Pricing (UBP) for B2B SaaS companies.The first topic we discussed was "What is Usage-Based Pricing"? The concept is pretty basic, aligning pricing to the value received by the customer. This concept has been used in other consumption-based industries, such as gas, water, and cellular phone bills.How does UBP impact the traditional use of subscriptions? Approximately 50% of SaaS companies using a Usage-Based pricing model also include an annual subscription as part of the pricing structure....a hybrid model. One interesting aspect when using a UBP + Subscription model is what is included in the subscription versus being purely usage-based charges?One of the challenges of a Usage-Based Pricing model is the increased challenge of revenue forecasting - which was one of the benefits of the traditional SaaS subscription model. Todd highlighted there is a trade-off in pricing between simplicity and value alignment. By having a hybrid Usage-Based Pricing model, there can still be the predictability of the subscription model while still having the opportunity to increase revenue as value increases for the customer.Is there a history of Usage-Based Pricing in a software subscription model? In the spirit of all things being circular, the original use of UBP was in time-sharing, which was a popular software application usage model in the 1980s. One of the challenges in that phase of subscription software was once usage increased to make the monthly cost-prohibitive or after a couple of unexpected large invoices from higher than normal/expected charges. Todd highlighted that with the introduction of the Customer Success organization, coupled with the use of product analytics, a SaaS vendor can stay in front of sustained "larger than expected" invoices and even use increased usage to re-structure the agreement to either "cap" overage usage and/or decrease the per-unit cost in consideration of a larger commitment.Todd recently conducted research that identified 6 product attributes or leverage points that suggest considering a Usage-Based Pricing model:1. Lower in the technology stack products (infrastructure, databases, tools, platforms, etc.)2. Application products that have a high Cost of Goods Sold basis 3. Use of the product is directly linked to business value (payments, eCommerce)4. Self-provisioning products (think Product-Led Growth)5. Growth and intensity of usage (high growth, heavy usage-based products)6. Value is driven by automation - such as integration/API based productsTodd has a unique perspective on the SaaS industry, informed by reviewing and lending to 1,000's of SaaS companies, and his recent research on Usage-Based Pricing across the SaaS industry is the basis for an information-packed conversation.