L'unico numero che devi guardare per capire se la tua azienda sta veramente guadagnando

There's only one number that allows you to truly understand whether you're making money: profit, which can be easily calculated by subtracting costs from revenue. To get a complete and realistic view of what this figure can tell you, you need to do two very simple things: Calculate it monthly. Follow business and entrepreneurial logic, not fiscal logic. This means you shouldn't extract the number that's relevant to the tax authorities or banks, but the one that's relevant to you to understand your company's true performance. But what information does profit provide? First, it tells you how much you've grown richer or poorer in the previous month, and this is crucial. This figure must obviously also include the salaries of any partners you may have, which should not affect profit. Generating a real profit means that your company is producing value beyond the partners' work. The second thing it tells you is whether there is a loss. If so, it means that a portion of your company is covering it. It could be due to: Inventory Debts to suppliers, the government, or banks Your partners The most serious thing is that without profits, you risk realizing it when it might be too late. As you've seen, this data is very important, if not fundamental. However, there are some information it cannot provide. We're talking about a very general indication, which therefore can't tell you where the profit or loss comes from, but only how much it is. Contrary to what you might think, profits aren't only visible in the current account. A company's assets are, in fact, made up of various parts to which profits or losses can be transferred. These are: Inventory Account receivables Debts to suppliers or the government This data also can't tell you all those movements that don't impact the company's overall wealth. I'll give you just one example: if payments increase, the amount of your customer receivables will inevitably decrease. In this case, the effect on total wealth will be zero because there will be an increase on one side and a decrease on the other, but we're talking about a very significant change for you. In fact, it's better to have money in a current account than to have a lot of debt owed to your customers. Profit measures overall wealth without worrying about its composition. Another thing it doesn't record are wealth transfers between shareholders and the company. An example is the withdrawal of profits. This isn't recorded because it measures wealth generation before shareholders withdraw. You might be wondering where you can find all the answers that profit can't provide. There are five other numbers to answer these questions. Where can you find them? In my new book: "Numbers Don't Lie." You can download the first chapter for free by clicking this link: https://www.numerium.it/capitolo-gratis/ Or you can BUY IT DIRECTLY by clicking this link: https://www.numerium.it/numeri-non-me... Enjoy your reading! Claudio Cerutti