12

Analyze Profit and Loss on Products and Services

by | Apr 16, 2012 | PKF Texas - The Entrepreneur's Playbook®

Note: Running weekly in FromGregsHead.com, PKF Texas – Entrepreneur’s Playbook® is a continuing series of tips brought to you by Greg Price. These run Sunday evenings during the BusinessMakers Radio Show on KPRC 950AM.

Greg: This is PKF Texas , the Entrepreneur’s Playbook. I’m Greg Price, direct of Consulting Solutions, and I’m here, again, with our client, Tim Burkett. CFO of Petris. Tim, welcome back to the Playbook.

Tim: Greg, thanks for having me.

Greg: So, Tim, when you were going through the proposal process, one of the things that I think you asked us about involved having a tool for profit and loss on products and services. You mentioned that in your initial intro to us a few segments back. Tell us a little bit about how you use dimensions which is kind of a tool for that.

Tim: We’ve been very happy with the dimension aspect within division. We have six different product lines within the company. We have, within those product lines, different revenue generators which would be for a software company, licensed sales, maintenance, services. The dimension tools, within division, allow us to analyze the data on an entity to entity basis or consolidated basis by different elements within our product mix.

So we are able to then slice and dice the data to give us an analysis on how we’re doing on a detailed level up to the consolidated level. So it’s been very helpful.

Greg: So would that be fair to say that you have a much quicker advanced look at how things might be going in a particular product or service?

Tim: We have a good advanced look, and we also are able to then tell what we’re doing well on where we may need a little work, also.

Greg: Sounds like it’s another great return on investment for you.

Tim: It’ s been a very good tool.

Greg: Thanks, Tim, for being here at the Playbook today.

Tim: Thank you.

Greg: If you’d like to learn more about Petris, go to Petris.com. This has been a Thought Leader Production brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter and remember, if you have financial reporting questions, give PKF Texas a call.

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