Barbara Steckly from Preferred Client Services with your bookkeeping tip for the day.
Are you concerned about profitability from the goods you sell? I certainly hope so!
If your main business is to buy and then re-sell goods, setting the correct retail price to insure profitability is really important. You start by adding up the actual cost of that merchandise, which includes the wholesale price and shipping costs. This is landed cost. What about other costs your company incurs to sell that product, marketing and labour for instance.
Many businesses fail to include in their calculations these non-direct expenses. If that is missed, then you might have strong revenues, but lower profits because your margins are too low.
Take time to review all your costs related to the products you sell. Maybe your retail price is too low or maybe you can buy better.
Preferred Client Services, partnering with you, your Edmonton business, your team, and your accountant to make a positive difference in our bottom line.