Creative Agency Success Show
Has your business scaled beyond $1 million in annual revenue? Do you employ a staff of 20 or more people? If so, you've likely experienced a whirlwind of highs and lows that come with growth. You're not alone in your journey. Since 2002, Summit CPA Group, now Summit Virtual CFO Services by Anders, has helped businesses and creative agencies across America and the globe by providing Virtual CFO Services, cash flow management, business tax planning, financial forecasting, and much more. We've also performed hundreds of 401(k) audits and provided CPA firms with accounting outsourcing services and Virtual CFO consulting. This podcast seeks to help service-based business owners dive deep into the financial side of their business to achieve growth and financial success. Tune in bi-weekly as our hosts—Jamie Nau, Director + Virtual CFO, and Jody Grunden, Partner at Anders CPAs + Advisors—interview special guests to share knowledge in the digital and creative agency industry, as well as Jody’s experience as a service-based business owner and entrepreneur.
Creative Agency Success Show
Financial Metrics: Net Income
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info@summitcpa.net (Summit Virtual CFO by Anders)
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Episode 6
“A service-based company should be making 15% net income, 10% is the break-even.” - Jody Grunden
The finer details of this episode
- Why 10% is the new break-even
- How profit margins get smaller as your company gets bigger
- The sections of an income statement and why they are important
- How to calculate your actual gross profit and determine what it should be
- How much to invest in your employees outside of their paycheck
- The difference between overhead cost and production cost
- What you can do to increase your gross profit
- How to prepare for a recession
Episode resources
- Summit CPA website - www.summitcpa.net
- Email us with questions/comments- vcfo@summitcpa.net