insurance sales agent salaries
"Money is a terrible master but an excellent servant. ~ PT Barnum
Need money to pay their employees, pay rent, buy supplies and pay other expenses. Money provides the lifestyle of entrepreneurs and business is essential for it to continue. Without enough of it, your business dies.
Their understanding of money is crucial because it must have and understand the money to survive for long.
Knowing the number
If you want to plan so effective as a business owner or professional who must "know the numbers." Know the numbers means you totally and completely understand the financial aspects and the financial situation of your business.
Below is a list of financial information you should know about your business:
1. Gross income: the amount of total income from all sources.
2. Gross Expenditure: the total amount of money spent to manage their business with the exception of income taxes. Gross expenditures include salaries, wages, cost of inventory, telephone, office supplies, etc.
3. Net income: gross income less gross expenses. Sometimes This is also called gross profit.
4. Income after tax: Net income less expected federal and state income tax business. This also called net profit.
5. Fixed expenses are those expenses that do not change from month to month, regardless of the amount of product or service you sell. For example, rent, staff salaries, insurance, or anything that has an unchanging, fixed cost.
6. Variable expenses: these expenses that change according to the quantity of goods or services sold. For example, the cost of the product (which costs four dollars to produce each CD they sell), tax sales, wages (hire someone because you sell more CDs), marketing, etc. These expenses are also called marginal costs.
7. These areas your business more profitable: each of its products and services that produce revenue and expenses are associated with it. You must be able to identify revenue and expenditure that are associated with each product and service so you can determine what products and services are more profitable.
8. The net profit of their labor: the amount of the benefits produced by the workers. Some workers produce goods or provide services that bring in revenue. Subtracting the cost of having workers which will result in net profits from their labor. Obviously if they are not doing a net benefit of certain individuals should be assessed carefully the reasons for continuing in their current position.
9. Opportunity cost: This is the time and money it takes to prepare and deliver a product or service. This time could be spent elsewhere if you are not making or delivery of that product or service in particular. You want to be delivering the most profitable item or service in order to make more profitable use of its resources. This is not really a number, but it's something you need to recognize when analyzing the financial situation of your business.
These are the basic numbers as any business owner you should know actually make decisions about your business. One of our jobs as coach and his accountant is to determine which parts of the financial puzzle that you know and what areas need for more complete information.
The side lighter
"I'll tell you what I tell all taxpayers who sits in that chair," said IRS agent at the start of the audit of Brown. "It'sa privilege to live in this great country, and you must pay your taxes with a smile."
"Thank goodness," Brown said a visibly relieved. "I thought it was going to ask for money."
We wish you a prosperous and balanced life
About the Author:
Stan Mann, C.P.C. supports business owners, top executives and commission salespeople to substantially grow their business and have a balanced life. He is a Certified Professional Coach. For additional articles and resources please visit http://www.stanmann.com I deliver customized coaching programs to help you become the leader of a highly successful and highly satisfying business.
Article Source: ArticlesBase.com – Ability to Make Money and Keep it is the Lifeblood of your Business
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