Are You Taking Your Profit First?
Why is it important to focus on PROFIT? Because as humans, we are programmed to place significance on what we see first. It’s called the Primacy Effect. Traditional accounting has taught us that Sales – Expenses = Profit. That’s fine and dandy for financial statements but not for business owners who live in the real world.
Brandi’s Profit First Success Story
Brandi came to us in November of 2020 for accounting and tax services for her retail business. Brandi was experiencing rapid growth and was having trouble calculating the amount she should spend every month on inventory. Her rapid growth came with some confusion. Brandi’s sales were growing, and she had a decent profit margin but couldn’t understand where her cash was going. She also wanted to open a new location but wasn't sure if she could afford it.