3 ways you should be analyzing financial reports
Small business owners must pay close attention to financial reports, because they give essential insights into the financial health and performance of the business. Correctly analyzing the balance sheet, income statement, and cash flow statement will yield invaluable...
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...