Money
More sales. What’s left after costs?
Revenue is the starting point. Look at the costs of making each sale before deciding what to grow.
Start with what was actually sold.
A sales total doesn’t show what remains after the costs of an order. Start with sales after discounts and refunds, then bring together product costs, payment fees, delivery costs, and other costs directly associated with those sales. Make sure you are comparing the same period.
Be clear about what the figure means.
The amount left after the variable costs of a sale is often called its contribution. It still has to help cover costs such as rent, salaries, and other overheads before the business makes a profit. Don’t label a partial view “profit” if important costs are missing.
Agree the calculation.
Decide which costs belong in the view, where the data comes from, and how to handle returns or costs recorded later. Marketing costs may need separate treatment if they can’t be linked reliably to individual orders. Write down the method and its limits so comparisons stay meaningful.
Look beyond the average.
Different products and channels can leave different amounts after costs. A promotion may increase orders while shifting sales toward lower-margin products. Where the information supports it, look at the mix rather than relying on one average for the whole business.
Consider cash timing too.
Profitability and available cash are different questions. You may pay for stock well before customers buy it, or finish a project before the invoice is paid. Consider upcoming payments and expected receipts alongside the margin view.
Use it to answer a decision.
Should an offer continue? Does a product need a different price? Can the business fund the next stock order? Start with one question and use the review to understand the options. Your accountant can help confirm how the figures relate to the books.
Start with one product or channel. Agree the calculation, make the gaps visible, and choose the decision the review needs to support.
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