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How to Calculate Your Profitability: A Case Study

CFO Simplified

Our client was a printing company located in North Central Illinois with sales of $19,200,000 and a second-generation owner. Manufacturing variances were caused by a variety of factors, but the summary general ledger (GL) postings didn’t provide an answer. . Let’s dive in. The Client. Let’s first set the scene.

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How do I clean up my financial statements?

CFO Share

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. That can lead to “GL diarrhea”: too many ledgers, multi-page P&Ls, and unusable financial statements.