Your books may be full and your revenue may be up, but is your business truly profitable? In this episode, host Danielle Hayden explains how to use your income statement to see what’s really going on in your business. You’ll learn the difference between revenue and profit, strategies to increase profitability, how to avoid common pitfalls of growing a business, and much more. Tune in for tips on balancing productivity and profitability during a season of growth!

Key Takeaways:

• High productivity does not always equate to high profitability, so it’s essential to review your financials regularly to assess how business growth impacts profitability.

• Understand the purpose of the income statement and how it can help you balance productivity with profitability as you grow your business.

• Discover the most important number on the income statement, what healthy percentages look like in a growing business, and why revenue is a misleading metric.

• Learn what you can do as a business owner to manage expenses without sacrificing productivity or quality of service.

Topics Discussed:

Client case study: when productivity doesn’t equal profitability (1:12 )

Breakdown of the income statement (2:41 )

The most important number on the income statement (5:33 )

How business growth impacts profitability (6:15 )

Using the income statement to assess productivity versus profitability (7:54 )

Managing costs during a period of growth (11:06 )

Four tips to balance productivity and profitability (17:48 )

This week’s homework (19:26 )

Resources:

Listen to the Business By The Books Podcast Hiring Series!
https://kickstartaccountinginc.com/the-ultimate-hiring-strategy-with-kickstart-accounting-inc/

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