Solutions We Create
Customer and Product Line Profitability Analysis
Problem
You think you might be losing money on a customer or product… but you aren’t sure.
Solution: Customer and product line profitability analysis.
Focusing on the products or customers who contribute most to your bottom line is one of the best ways to manage profitability during a downturn.
We worked with a consulting company, restructured their chart of accounts, and slightly modified the way they recorded transactions to start tracking customer profitability. After a few months, they were able to see the results and they were surprised that their largest revenue-generating customer was not their most profitable.
For the first time, the owners were able to look beyond customer revenue and develop strategies to target the most profitable customers.