Measuring Corporate Profitability


April 10, 2007

What automated means are available to measure corporate profitability?

It all starts with your system. Revenue and cost classifications need to be setup for meaningful analysis.

Next, as the system is being used, activity must be classified. This coding ensures that as data moves through the system it can be captured.

As an example, revenue should be classified by type and so should costs. When orders are taken and invoiced, the end result is an accumulation of statistics on where the revenue is coming from. Likewise, when payments are made, these costs need to be denoted.

All of this data can be reported in the form of classic hardcopy reports, graphs and charts or through a desktop data portal. A portal allows data to be reported at the press of a button.

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