We all know that every company and every entrepreneur goes into a business venture with the goal of making a profit. At least that’s what’s it supposed to be like in real life.
By now, you have definitely had the opportunity to hear a caterer talk about daily or monthly turnover and then they suddenly mention how much is spent on booze and how much money they are left with to pay for everything else.
After that, they start listing what they have to pay their workers, the government and everybody else in the food chain, ranging from salaries, value-added tax, consumption tax, retirement funds, health insurance, music licensing, forest protection, air, space exploration, yadda yadda yadda…
Thank you for getting the point!
Many business owners know their list of expenses, and how can they not when the postman will show up with a notice about overdue payments or even worse, government employees will come on over and refresh their memories in case they forgot to pay for something.
Unfortunately, there are cases when individuals venture into the catering business without learning the basics of the trade beforehand, so they don’t know the difference between turnover, expenses, and profit or that they still have to pay profit tax on that profit.
Let’s give an example where a caterer is having a HRK 5000 daily turnover. In a month, that comes up to HRK 150,000 of turnover and, for example, if their expenses (drinks, food, rent, utilities, value-added tax, profit tax, state charges, etc) are HRK 140,000, then their profit for that month stands at HRK 10,000. But, they still have to pay a profit tax, which in most cases is 15% (but not always), so in this case that comes up to HRK 1,500 in taxes.
In the end, after all those taxes, that business owner can say they’ve made a clear profit of HRK 8,500.
Many caterers know that when they pay a retail price – let’s say they’re paying for a beer which is HRK 15 – the wholesale price for that beer is HRK 7, so they get to keep the HRK 8 difference for themselves. But, there are few caterers out there who know how much of that HRK 8 they actually get to keep, because they have to calculate accounting and bookkeeping fees.
Now, this wouldn’t be an issue if not handling these numbers in real-time won’t lead to bad future decisions – too much debt, the inability to pay current liabilities, over-investing and much more.
Now that we’ve gone through this shortlist, what do you say to having a program that can show you everything you want to know in just one click in real-time?!
What do you say to a program that lets you make entries for all known expenses (rent, salaries, net, and gross figures, utilities – annually and by monthly average, even expected costs such as supplier contracts) and after all of that, this program calculates daily differences between wholesale and retail prices, VAT, profit tax, etc, etc.
So, in simple terms, what do you say to a program that gives you insight into your ACTUAL profit?!
Would you like to have an ‘assistant’ like that?
I am sure that you do!! 🙂
Feel free to contact and we’ll introduce you to your new program and financial advisor in one!
