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24 tagged with "Profit Margins"

Calculate, benchmark, and improve profit margins across your business

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Staffing Agency Accounting: Bill Rate, Burden, and the Payroll-to-Payment Gap
·mike

Staffing Agency Accounting: Bill Rate, Burden, and the Payroll-to-Payment Gap

How staffing agencies should price bill rates above fully burdened pay rates, read gross margin by placement type, and book invoice factoring without hiding the spread. Includes burden components (FICA, FUTA, SUTA, workers' comp), a placement-aware chart of accounts, and the DSO math behind payroll funding gaps.

bookkeeping
small-business
payroll
cash-flow
+4
The Rule of 40 for SaaS Founders: Calculation, Benchmarks, and When to Ignore It
·mike

The Rule of 40 for SaaS Founders: Calculation, Benchmarks, and When to Ignore It

The Rule of 40 says a healthy SaaS company's revenue growth rate plus profit margin should clear 40%. This guide covers how to calculate it, which margin metric to use, 2026 benchmarks (median score around 12%), the Rule of X variant, and when the rule does not apply.

saas
benchmarks
financial-ratios
startup
+3
Break-Even Analysis: How Many Units Must a Small Business Sell to Profit?
·mike

Break-Even Analysis: How Many Units Must a Small Business Sell to Profit?

Break-even point in units equals total fixed costs divided by contribution margin per unit. This guide shows how to separate fixed and variable costs, compute contribution margin, find your break-even sales volume, and measure margin of safety.

small-business
profitability
profit-margins
pricing
+3
Break-Even Analysis and Contribution Margin: The Formula Every Small Business Should Run Monthly
·mike

Break-Even Analysis and Contribution Margin: The Formula Every Small Business Should Run Monthly

A working guide to break-even analysis covering the contribution margin formula, multi-product weighted approach, margin of safety thresholds, and four pricing scenarios — with a candle-maker example showing why a 10% price cut can erase 25% of unit profit.

small-business
pricing-strategies
profit-margins
profitability
+4
Restaurant Prime Cost: Why Weekly Tracking Beats the Monthly Close
·mike

Restaurant Prime Cost: Why Weekly Tracking Beats the Monthly Close

Prime cost combines food, beverage, and labor as a percentage of sales—target 55–60% for quick-service and 60–65% for full-service. Tracking it weekly instead of monthly catches portioning and scheduling problems within seven days, while a 4% food cost variance on $1M in sales quietly costs $40,000 a year.

small-business
profit-margins
cost-of-goods-sold
cost-management
+3
Weekly Prime Cost Tracking for Restaurants: Hit the 55–65% Benchmark and Catch Margin Leaks Before Month-End
·mike

Weekly Prime Cost Tracking for Restaurants: Hit the 55–65% Benchmark and Catch Margin Leaks Before Month-End

A working operator's guide to calculating restaurant prime cost every seven days, the 55–65% benchmark by service segment, the five leaks weekly tracking surfaces first, and the bookkeeping setup the cadence requires.

restaurant
cost-of-goods-sold
profit-margins
bookkeeping
+4
Activity-Based Costing and TDABC: A Practical Guide to Customer and SKU Profitability
·mike

Activity-Based Costing and TDABC: A Practical Guide to Customer and SKU Profitability

Activity-Based Costing replaces volume-based overhead allocation with cause-and-effect cost drivers, revealing which customers and SKUs actually pay and which silently lose money. This guide explains how ABC and its modern successor TDABC work, the five implementation steps, and why roughly 20% of customers and 30–40% of SKUs often destroy value.

cost-management
expense-allocation
profitability
profit-margins
+3
How to Read Your Income Statement: A Complete Guide for Small Business Owners
·mike

How to Read Your Income Statement: A Complete Guide for Small Business Owners

Your income statement reveals whether your business model actually works—not just whether the bank balance is positive. Learn every line item from revenue to net income, how to calculate all three profit margins, and how to spot cost trends before they compound.

financial-statements
small-business
accounting-basics
profit-margins
+3
Profit Margin: The Complete Guide for Small Business Owners
·mike

Profit Margin: The Complete Guide for Small Business Owners

Learn how to calculate gross, operating, and net profit margins, what counts as a healthy margin by industry, and six proven strategies to improve your bottom line.

profit-margins
profitability
small-business
financial-management
+3
The Income Statement Explained: A Complete Guide for Small Business Owners
·mike

The Income Statement Explained: A Complete Guide for Small Business Owners

A line-by-line breakdown of the income statement for small business owners — covering revenue, COGS, gross profit, operating income, and net income, plus key ratios and the five most common mistakes that distort results.

small-business
financial-statements
accounting-basics
financial-ratios
+4
How to Calculate Profit Margin: The Complete Guide for Small Business Owners
·mike

How to Calculate Profit Margin: The Complete Guide for Small Business Owners

Gross, operating, and net profit margin explained with formulas, industry benchmarks, and worked examples—so small business owners can measure and improve true profitability.

profit-margins
profitability
small-business
financial-ratios
+2
Revenue vs. Profit: What's the Difference and Why It Matters for Your Business
·mike

Revenue vs. Profit: What's the Difference and Why It Matters for Your Business

Your business pulled in $500,000 last year—but did you actually make money? Learn the critical difference between revenue and profit, the three types of profit you must track, and how to improve your margins.

accounting
small-business
financial-management
bookkeeping
+2
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