• Leonard Brecken

Accounting vs Profit Financial Alignment

Most small businesses books are done in such a way that aligns them to pay taxes not measure or improve profits. The key to successfully improving the profitability of your business is better understanding where your profits are derived. You can't do that if your books have all you product & operating segment data lumped together. Nor would you be able to tell what's going on revenue wise, nor in margins nor in profitability. Without the proper inputs to your books you won't be able to do much to improve your profits except SELL SELL SELL EVERYTHING which most owns do. So re-aligning your books is a start. But it goes beyond that as businesses need to define their business strategy to define who they are, what their customer value proposition and how they intend to compete to win business. This latter point goes before the realignment of the books because it defines how the books should be aligned and the where a businesses resources should be directed based on potential profitability. I say should because in actual practice a defined business strategy either never is defined at all nor matches where actual profits are derived. In actual practice a bar may say "we want to provide a unique drink experience to our customers". While in reality the bar makes most of their money on their burgers and is why patrons come there! Then their books lump drinks & food all in one sales and expenses are never segmented.


At CCS we provide CFO/Bookkeeping services that go beyond the numbers to improve profits & value. Contact us at TheProfitConsultant.me for more.

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