Blind Spending: The Hidden Threat to Your Financial Well-Being
Have you ever checked your bank statement and thought, “Where did all my money go?” You’re not the only one. Many people are surprised by low balances even when they try to save. Often, blind spending is to blame.
Continue reading →Today, a new client who works as a customs house broker told me they were struggling to understand their duty services.
They were busy, but because all duty-related revenue went into one general income account, they couldn’t answer a basic question: Are we actually making money on duties?
You can’t manage what you can’t measure.
I suggested they set up a separate income account for ‘Duty Sales’ and link the right service items to it.
With a clear line item on their P&L, they can now see revenue and costs side by side. This helps them make better decisions and avoid losing money on this service.
If your P&L is missing important performance data, consider cleaning it up. Seeing the numbers clearly is the first step to making your business more profitable.