Jacksonville CPA | Revealing Your Financial Goals
Hello, my name is brandon mcelroy. Welcome to the podcast. I’m the president of Mineva, Jacksonville based tax and accounting firm. We’re, we focus on helping our customers achieve their financial goals. So thank you for joining me today. If you’re Jacksonville CPA is not helping you and now you don’t feel like you’re getting the value that you deserve. I’m give me a call. Schedule a free consultation enabler. We, we focus on setting and achieving goals for our customers and we, um, we go beyond just the traditional compliance services in an accounting firm and we try to, um, help you achieve financial freedom. Okay. Which is, which is, um, I would say out of the ordinary for a Jacksonville CPA. So today we’re going to talk about,
uh, numbers and what it means to know your numbers. And we’ve talked about this before, but you always have to have the, your finger on the pulse of your business. Okay? And you’re the pulse of your business. Is there other things you have, you know, staff employees and things like that. But it’s all the end goal is for you to reap a financial benefit and to achieve certain financial objectives for you or your family. Um, I don’t know very many people that will work for free. Some of them may be, but I don’t know very many people that will work for free. Okay? So it’s all about the money. We’ve always heard that term. It’s all about the money and with fewer Jacksonville CPA is not breaking this down for you. Then you need to Coleman, Eva, schedule a free consultation and um, we will walk you through
exactly what you need to do to achieve your financial goals. So the pulse of your business, your numbers. So we’ve talked about this before and first you need to set the break for your business. So what is it? Break even points that you don’t, you don’t want to just break even in a business. You want to be profitable, but to be profitable you have to set to break even point and know where that is. Okay? So a break even point is the amount of money that your business requires to break even. So to, to not be in the hole, to not be borrowing money, to pay all the necessary bills, okay, not to make a profit, no, just to pay unnecessary bills, keep the lights on. So your utilities, your rent, your basic administrative salaries, you know, you’re, you’re different office supplies, just amounts, different amounts that you need to break it even before selling one item or delivering any kind of service. So you know, if that number is $5,000, then you know, you need to track that to put that down, notate that $5,000 my breakeven and then you need to know. So if at the 25th of the month, if you’ve only generated $3,000 in sales, then you’re in trouble. You say you’re going to lose money for that month. So when I say you need to have your finger on the pulse of your business, then that means that you need to know exactly where you are from a sales standpoint and how that relates to your breakeven point and your desired profitability, etc. Etc. So, um,
on thE, on the flip side of that, so your, your break even point, um, is $5,000, right? So if you’re jacksonville cpa has not explained and walk through your break even point for you, then please give them a naval a call.
Um, so do you need to also know your average profit per customer or your let’s just revenue per customer first, your revenue per customer. Okay. So
for some, there’s so many different types of businesses and forms of businesses, but your, um, you know, you, you may be in a business that has just a few customers at a very high revenue or a lot of customers at a smaller revenue. So if you’re an average customer is $100 in revenue and you break even point is $5,000, then in the middle of the month, if you have service 50 customers, then you have already hit your break even point, right? so there are certain metrics that you can use to in your business to keep track and keep your pulse on your business. Keep your finger on the pulse of your business. and so knowing the average revenue per customer, you can then drive your team to, to focus on getting a certain number of leads per day if. And also another item would be your conversion rate for customers.
Okay? So what amount of, what did you, what amount of your customers are going to convert into that sale? Okay, how many people do you have to talk to or have to see to convert to that sale? You know, so what are you spending on advertising? And you need to be, you need to have an advertising budget through Jacksonville CPA is not talking to you about advertising, then you need to give them an eva a call. So you need to be spending at least five percent of your gross revenue on advertising. Jacksonville CPA Five percent difference. Difference between a high growth company and a non high growth company is the amount that they spend on advertising. High growth company spends between 11 and 13 percent of their gross revenues on average in advertising. A non high growth company spends three to five. Okay? But you need to be.
You need to at least spend five percent. Okay? So know your numbers, what’s your break even point? How many customers does it take for me to break even? Okay, how many people do I have to talk to to get a customer? And then you can chunk that out. So if you want to make $5,000 of profit in your and you have $5,000 of breakeven, okay? So you’re going to need to at least generate $10,000 in revenue depending on if you have variable costs associated with earning more revenue. I’m going beyond your break even point. So we’ll vote a variable cost is, as you know, it varies based on the number of sales. So you may have capacity to reach 100 customers at $100 a customer, okay? And you may have the capacity uSing your, your, uh, your break even, um, you know, fixed expenses. But if you’re going to have to add, you know, add thirty cents of, of labor for every dollar that you generate in revenue, then that means that you’re going to have to generate even more to get to that $5,000 profit number that you want. So this is Just the importance, just a brief conversation of knowing your numbers. Hope I put that in a way you could understand it. But, uh, if you’re jacksonville CPA is not talking to about this and please schedule a free consultation with me.