CHAPTER 3
Using Your Net Income Statement to Improve Profits
Driving with Your Eyes Open
Now that you understand what we learn from the monthly Net Income Statement—is the business making a profit or showing a loss—you have a framework for making decisions. The challenge is to use this information to manage your business so that you are maximizing profits while keeping a tight rein on costs.
Achieving greater profitability does not mean taking advantage of unsuspecting customers. It means delivering value to customers while being wise about how you invest your time, energy, and scarce resources (like cash) so you get the best return on investment. If a business is not delivering value for what it’s charging, customers simply will not buy from ...
Get Accounting for the Numberphobic now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
