New Guide: Are You Ready to Take Control of Your Profitability?
Kirsch CPA Group
Aug 26, 2022

In our latest guide, Build a Better Business by the Numbers, we explore the common pitfalls of profitability and how to avoid the mistakes that will harm your bottom line.
Understanding your profitability starts with an accurate understanding of your finances. Are all parts of your business equally profitable? How does your profitability project out for the year, over 5 years, 10 years?
Running a successful company is more than just maintaining profitability; it needs to grow. What are the steps to get there – and what common pitfalls could be holding you back?
Balance Sheets, Cash Flows & Revenue Traps
Assessing the financial health of your business involves a full review of your books, starting with your balance sheet.
As the thermometer of your business, your balance sheet plays a vital role in your success, helping to identify other critical financial measures, including:
- Working capital
- Net equity
- Debt levels
Cash flow, an equally important measure of financial health, is often misconstrued. Understanding this term – along with the difference between measuring revenue and profitability – will aid in growing your profitability.
An effective profitability analysis will provide key insights including a review of margins and other financial factors for success. To learn more about understanding and improving profitability, read our eGuide.
Looking through the Windshield vs. Rearview Mirror
Moving the growth of your business forward is about understanding your numbers while avoiding common mistakes along the road to profitability.
Clarifying the long-term goals behind your investments, scrutinizing the sustainability of your revenue growth, and balancing your focus between revenues and profitability will help in side-stepping the pitfalls of finance.
Focus on the numbers that help move your business forward – like cash flow – and establish accurate projections of revenue growth over the next 12 months. Not sure where to start? Work with a financial partner to help you determine your current – and potential financial health.
A CPA Partner to Help Navigate Profitability
Evaluating the financial health of a business takes skill, objectivity, and experience. An experienced accounting partner will undertake a holistic approach to understanding and improving your business, financials, and goals.
Kirsch CPA Group offers holistic business advisory services to assist businesses, nonprofits and other organizations throughout the Midwest to grow profitably and achieve their goals faster and easier.
With a team of seasoned professionals and a deep understanding of profitability measures, we can help provide the insights you need to develop strategies for growth based on accurate numbers. Speak with one of our accounting advisors to get started.

About The Author
Kirsch CPA Group is a full service CPA and business advisory firm helping businesses and organizations with accounting,…
Tags
Sign Up for Email Updates
Related Articles





















Tax Treatment of Debt Forgiveness: Watch Out for Tax Bills Delivered COD
- 01-18-23
- Kirsch CPA Group












Manufacturers: Be Aware of These 3 Business Tax Provisions Currently in Limbo
- 01-18-23
- Kirsch CPA Group



The Tax Deductible Mileage Rate for Business Driving Increases for 2023
- 01-04-23
- Kirsch CPA Group









Succession Planning Considerations for Construction Business Owners
- 12-14-22
- Kirsch CPA Group






Prevent Fraud at Your Construction Company With a Holistic Approach
- 11-30-22
- Kirsch CPA Group









Manufacturers Must Act Now to Maximize Depreciation-Related Tax Breaks for 2022
- 11-09-22
- Kirsch CPA Group



It’s Time for Businesses to Rethink Their Working Capital Practices
- 11-09-22
- Kirsch CPA Group









Social Security Wage Base and Earnings Test Amounts Increase in 2023
- 10-27-22
- Kirsch CPA Group



New Law Enhances Payroll Tax Break for Small Manufacturers’ Research Expenses
- 10-13-22
- Kirsch CPA Group







































How Buy-Sell Agreements Factor into Business Owners’ Estate Plans
- 09-14-22
- Kirsch CPA Group









SALT Cap Workaround Law Could Save Ohio Business Owners Over $100 Million
- 08-31-22
- Kirsch CPA Group





















How Manufacturing Companies Can Benefit from the Section 179 Expensing Deduction
- 08-04-22
- Kirsch CPA Group



























Could the Work Opportunity Tax Credit Help Your Construction Company?
- 06-23-22
- Kirsch CPA Group






Good News: IRS Boosts Standard Mileage Rates for Second Half of 2022
- 06-23-22
- Kirsch CPA Group
























Education Benefits Can Help You Recruit and Retain Smart Employees
- 05-26-22
- Kirsch CPA Group









Ensure Your Construction Accounting System Has the Right Features
- 05-12-22
- Kirsch CPA Group





















John Kirsch Named to Greater Butler and Warren Counties Business Hall of Fame
- 03-25-22
- Diane Glover






Manufacturers Need to Act Soon to Take Advantage of 100% First-year Bonus Depreciation
- 03-17-22
- Kirsch CPA Group



























Commission Fraud: Salespeople Getting Paid More Than They’ve Earned
- 02-04-22
- Kirsch CPA Group
















































Consider a New Approach to Meeting Your Business Real Estate Need
- 09-17-21
- Kirsch CPA Group
























Beware: Teleworking Arrangements May Cause State Tax Withholding Issues
- 08-18-21
- Kirsch CPA Group
























5 Common Construction Accounting Risks — and How to Address Them
- 07-07-21
- Kirsch CPA Group















Supreme Court Finds No Standing to Challenge a Provision of the ACA
- 06-24-21
- Kirsch CPA Group






Labor Shortage: Unlock Solutions by Evaluating Your Employment Value Proposition
- 06-09-21
- Kirsch CPA Group









Material Participation Standard is the Key to Unlocking LLC Tax Losses
- 05-27-21
- Kirsch CPA Group









Know Your Legal Obligations Under the Americans with Disabilities Act
- 05-13-21
- Kirsch CPA Group



























PPP Loan Not Forgiven? There’s a Safe Harbor for Deducting Expenses
- 12-03-20
- Kirsch CPA Group












What You Need to Know About the Deferral of Payroll Tax Obligations
- 09-15-20
- Kirsch CPA Group


















PPP Loan Forgiveness – Significant Borrower Friendly Changes on the Horizon
- 06-04-20
- John Kirsch





















Tax Filing Deadline Remains April 15 – Payment Due Extended to July 15
- 03-19-20
- John Kirsch








































































Prepare to Receive a Social Security Administration No-Match Letter
- 10-15-19
- Kirsch CPA Group





















IRS Announces Changes for Personal Use of Employer-Provided Vehicles
- 06-10-19
- Diane Glover






























Watch Out for these Tax Issues When Planning for Your Business in 2018
- 06-26-18
- Diane Glover









What Image Does Your Organization Present to Large Contributors?
- 03-15-18
- Kirsch CPA Group



8 strategies to help you adapt to economic down turn without layoffs
- 02-24-18
- Diane Glover













































Remember To Take Required Minimum Distributions at Age 70 1/2 Or Face Penalties
- 02-17-17
- Sue Schloemer







































Time is Money: Don’t Spend Valuable Time Inputting Data into QuickBooks
- 06-18-22
- Diane Glover




