Tool #1 – Financial Reporting Formats
This shows the Profit & Loss statement format that we want to see at the top level for all our clients. From the concepts in my book and subsequent articles, it addresses the issue that your primary focus should be gross profit, not revenue. By filtering out cost of goods sold that are not labor, you get to see the true top line number for your business. The next key is to segregate Direct Labor from all other labor so you can calculate Direct LER (Labor Efficiency Ratio) and Management LER. The power of the LER calculations is to know how much productivity you should get for each type of labor dollar spent. For a more in depth discussion of the topic, see Tool #4.
Download the template for Financial Reporting Formats.
Referenced on page 12 of Simple Numbers, Straight Talk, Big Profits!
Please feel free to use any of our additional profit tools
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