article thumbnail

How to Calculate Your Profitability: A Case Study

CFO Simplified

As Iowa State University reminds us, “profitability is the primary goal of all business ventures.”. Business leadership is often responsible for measuring current, past, and future profitability. But what is profitability? This CFO Simplified client watched profitability slowly disappear—until they incurred a $125,000 loss.

article thumbnail

How do I clean up my financial statements?

CFO Share

Do your profits and cash flows make no sense? Too many general ledger (GL) accounts. Unsophisticated GL structures. Too many general ledger accounts. Accounting software makes it easy to add GL accounts but hard to remove them. Accurate costing is key to a useable profit and loss statement.