A Simple Change That Clarified Profitability

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.