Cost of goods sold calculation

What's so challenging about the cost of goods sold? Apparently a lot because many of the financial statements I have reviewed this year have a lot of errors - starting with the cost of goods sold.

How can you tell something is wrong? Look at the cost of goods sold (stated as a percentage) on your profit and loss statement over a period of several months. Is it somewhat consistent? Or does it fluctuate wildly from month to month. If it is the latter, there is likely an issue with how your sales and costs are recorded.

Is this an important number? Absolutely! When you report a cost of goods sold that is incorrectly too low, you are going to be paying more taxes than you should.

If your cost of goods sold is incorrectly too high, you are likely to slow down your buying and then you could find yourself with not enough product on your shelves.

Take a look at this on the Profits Plus website to see how it should be done.

Cost of goods sold calculation

Your next hire

We have watched many job interviews. Unfortunately it seems that the owner or manager is doing all of the talking and trying to sell the individual on the idea of working in their business.

Instead, we should be asking questions of the individual who is applying for the job and learning more about them.

A good question to ask is about their current or previous job. 

"Tell me about the moment at that job when you had your most memorable recognition for what you did at work. What was it you did? How were you recognized? How did it make you feel?"

Take thorough notes of their response. The applicant has just told you how they want to be an outstanding employee for your business and how they would like to be recognized.
 
We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.