4 Ways profit breakdown can benefit your business

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Profit breakdown by the customer – Sales by customer less cost of sales by the customer gives you the gross margin of the customer excluding any overheads. The breakdown helps the business to review and evaluate which business customer is profitable. Research shows that in most businesses 20% of the customers make up 80% the profit of the business. Financial data alone is not the basis for which decisions should be made to evaluate the profitability of the customer. Knowing your customers and their industry together with the buying trend can help you make an informed decision on the growth of their business. Some customers are also pain-free and do not cost much to manage their account. Although they don’t buy much they pay on time and have a few queries. To keep up to date data on customers my suggestion is to keep notes on customers on your customer accounts on your applications. This keeps a diary of communication queries that have come up on your customer within the trading period.

Product profitability breakdown. Important to know how much profit is made on the various products. This helps when the company decide to do away with certain products and also help review their product offering over a period of time. Again the statistics alone is not enough to make an informed decision. The availability of the product, the environmental and social impact which is a big news subject these days, all help in making decisions.

Supplier profitability breakdown – It is handy to know what are the profit numbers you are making per supplier. Your application will have to track sales made from suppliers products and the cost of sales of the products plus shipping from the suppliers. This gives you the profit of supplier A, B, etc. The question is, is it profitable to keep receiving supplies from supplier A or is it worth finding another supplier and stop making losses or despite the loss from supplier A you are making  enough the profit from supplier B which also covers the loss of supplier A, besides supplier A’s product is complementary product for supplier B. Important strategic decisions for your business giving you an advantage over your competition.

Department or sub-business profitability. It is worth knowing how the different parts of the business are performing. Transfer pricing may come into play here but once you use a fair system you have nothing to worry about. Different part of the business profitability helps makes a decision on which part is doing well which is not. The successful part of the business can be emulated on other parts of the business for the same success. It also helps make decisions about which parts to get rid off.

 

Track recruitment process

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Data is driving a lot of businesses forward these days. It is ideal to have a trace of how you employed Kay who is the exemplary staff that you so much would love to recruit about 10 of her. Make the entire recruitment process seamless. Involve the entire team in the recruitment process. many colleagues complain they were not part of the recruitment process which affects the relationship between new recruits and existing employees. Make informed and data-driven decisions.

Create your own job web opening website that reflects your brand and collects resumes. There is the option to create a web page to list jobs and collect resumes or create an application form to collect resumes only. You can also include the URL on the 3rd party job boards (Indeed, monster etc) and direct candidates to your portal. Post jobs on social sites by sourcing via your company’s social page.

Create your own recruitment business from scratch with the best software to help you run your business seamlessly.

Please get in touch and if you are in the recruitment industry or looking to enter into the recruitment space. HR personnel get in touch and make the recruitment process easy.

Integrate reports from different platforms

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There is currently hundreds of software being sold. Contemporary developers are trying to develop applications in a particular niche so that they could establish a market share. Notwithstanding there some very good applications out there which are close the all rounded product but are not quite the full product yet. In order to meet certain pressing needs, businesses use a combination of applications to satisfy their needs.

At PS we do a due diligence and find out what will work for the client before we advise them on the best software to use. There also uses of some theses software that is very good for corporations despite their huge investment in-house applications. In-house applications require substantial investment and become complex over time. The amount of accumulated data over time makes it difficult to migrate. Their complexity needs another huge investment to move to a contemporary or cloud-based application. However, this doesn’t mean that some of the needs of the business cannot be met by modern applications. I once used an outdated bank reconciliation application that required careful download and uploads and manually monitored the final balance on the bank reconciliation statement. By the time the process is over, you are physically drained. This is not the way applications should work. At PS we believe in the software doing you the mundane work whilst the individual spends time running and strategising the business.

We provide applications that bring the reports from different application together to one location. This makes it easier to find the various important data in one place. The report can locate inventory, contacts, sales and profits and show trends helping management in their decision making.