Gross profit is an important key performance indicator (KPI) to track, but so is the contribution margin. Many business owners unfortunately overlook contribution margin or do not fully understand what it represents. To truly understand your business's financials, learn what contribution margin is, how you calculate it, and what the number means for your business's ability to grow and expand.
Your business development team can't act on metrics that they can't track. Key performance indicators need to be.
Small businesses are required to set up DCAA-compliant accounting systems if they want to compete for government.
You don’t need an MBA to know there are two basic ways to increase your profits: increase revenues or reduce costs..