Business Owners Need to Know Their Numbers

DEDHAM, Mass. - July 7, 2016 - PRLog -- Chief Financial Officer Michael Barbarita has shared a new blog post about the one trait that most successful business owners have.  This trait is that they all know their numbers.  Michael writes that "knowing your numbers" includes:

·Knowing and understanding what your operating costs per hour are

·Knowing and understanding what your gross margin percentage is on key products

·Knowing which products you make the most money on and which products you make the least money on

·Knowing your inventory and what is slow moving

·Knowing your inventory turns ratio

·Knowing your average wage rate of direct laborers

·Knowing how many days receivables are outstanding

·Knowing how many days your payables are outstanding

·Increasing the overall accuracy of your decisions

·Understanding the metrics associated with your advertising campaigns

·Knowing how much cash you have on hand at all times.

·Knowing what your monthly debt service is.

·Knowing how productive your capital expenditures are.

A business owner who knows his/her numbers has a stronger sense of control over his/her business.  More importantly, he/she is on top of all possible business scenarios that can happen in their business.

The full blog post can be found at http://cfo-chief-financial-officer.blogspot.com/search?updated-max=2011-04-10T18:39:00-04:00&max-results=7&start=12&by-date=false.