It's great to have a well used accounting system quietly gathering thousands of data points about your business. Your bank transactions. Your invoice detail lines. Your purchases. Your stock movements. Your postage and electricity costs. The location of your customers. Their history with you. And so on.
But how to turn it into profitable insights?
Turning raw data into growth is Profit Engineering, the speciality of GrowthPath. It's based on finding what exactly wins you business: your points of difference, measured the only way which makes sense: the behaviour of your customers. We want to measure that with a few indicators. Next, we look at the decisions are you need to make, and we make sure that you get the information you need to properly influence those decisions. A lot of this is non-accounting numbers.
These are some articles you may find interesting:
From the Profit Engineering track
- Contribution Margin vs Gross Margin, a simple, easy improvement to reporting for more profitable decisions
- Choosing an inventory method: Perpetual or Periodic. The Perpetual method is vastly superior and well worth the extra effort
- Cash vs Profit: the uses and abuses of these two performance measurements
- Measuring your procurement effectiveness with the Purchase Efficiency KPI