Time for another corny accounting joke to segue into our next post: What is the definition of "accountant"? Someone who solves a problem you didn’t know you had in a way you don’t understand.
It's true, accountants do provide amazing insight and solve problems (and potential disasters) with your books. But there are also some things they won't be able to tell you about your business.
Part 1 of our Income Statement Report series showed you how you can gain insight into your sales for specific dates, giving you a better understanding of when your sales are at their best (and worst).
And that leads us to Part 2 of our Income Statement series. In this post, we are going to talk more about the Income Statement report and how it can help you gain more insight into the health of your business, specifically when it comes to what you're selling, and where you can improve those sales.
Do you know what your best and worst selling items are?
This is one of the nice features of using Kashoo. You can set up items (a great way to save time with data entry) and when you create an invoice or add income, simply select the item sold and the price will populate auto-magically.
But there's another added benefit to using items in Kashoo.
By using the Income Statement report, you can see how many items you sold in a given time frame, moreover, what you spent purchasing items in that same time frame.
Here's a quick look at how you can run the Income Statement report in Kashoo and focus on Items.
This is another example of key business information that your Income Statement can tell you that your accountant won't! Allow me to elaborate:
Perhaps you have items that never or rarely sell. Should you put them on sale or run a promotion? If you followed our example in Part 1 of this series, you can see how the Income Statement can help provide insight into promotions, too.
Additonally, maybe you can clear out your inventory of those items to provide cash flow to bring in a different product altogether.
Trial and error is part of growing your business, and if you have items that aren’t selling then your clients either:
- Don’t want them, or
- Don’t even know you sell them!
Be honest and true to yourself. Do you have a marketing issue or a bad product? Either way, running the Income Statement report to focus on items sold will allow you take the necessary steps to rectify the situation.
Want to learn more about what the Income Statement can tell your about your busienss? Check out Part 3 of our Income Statement series.