SlickAccount always focus on these numbers. We have made it simple.
SO WHAT YOU NEED TO DO?
You need to enter your monthly expenses and incomes for at least one month and then proceed to Insights > Periodic Profitability Graph.
You would be getting your numbers like Safe-to-earn?, Safe-in-hand? and Profit-index? above your profitability graph.
Let?s understand what these numbers tell us.
Profit-index? : quite understandable, it tells you how profitable you are at any given point of time in a month. A 30% profitability is minimum desired ratio to be termed as safe business. Below that your business is in danger.
Safe-in-hand? : This is the minimum cash you should have in hand in any given point of time in term to be really profitable. Keeping your cash reserve above this all the times makes you stay profitable. So keep an close eye on this.
Safe-to-earn? : This number tells you how much you can earn each month to be profitable. If you can make that much in sales each month you can easily grow your profits multiple times.
These depends on your expenses and rate of income so it may fluctuate quite a bit. So better you keep an eye on these numbers each week.
You need to provide all the transactions of at least one month, to make this chart and calculations show close to real value.
So what to do next?
Now that you knows how much sells you need to do to be profitable (Safe-to-earn?) relative to current spending rates, you can go to ?Plan? and enter that value as the sells target. Now you can check how close you are approaching to that target each month.
Getting as close to that every month ultimately make you stay profitable.
If you are a pro customer and selected in the Beta program to Core Profitability Advice, you would also be able to look at whether your pricing is correct and what should be the minimum desirable price for your services on any given month. Just go to Insights > Price Adviser and rest is quite understandable.
Hope it helps. Write back to us if you don?t understand something, we?ll help you understand it. Use SlickAccount regularly so that we can help you better.
Let?s cheer up to your profitability :)