Correctly interpreting your Labor Efficiency Ratio can pay big
In the last article, we introduced a key metric called the Labor Efficiency Ratio (LER). Basically, the LER measured how much a unit of revenue costs to produce. We’d encourage you to go back and read the previous article if you haven’t already. The higher the LER,...
Track your Labor Efficiency Ratio to spend salary dollars more efficiently
Gain insight into a big expense from this simple metric For most small companies, labor is the biggest expense. So as a business owner or manager, you need to keep a close eye on the relationship between the money spent on employees and contractors and the resulting...
3 tips to improve your Accounts Payable
Examining A/P is very important right now as credit starts to freeze Cash is always king when it comes to the accounting of your small business, but especially right now. Nearly daily the headlines are filled with concerns about credit seizing up for smaller companies...