Profit Protection
Retail businesses in particular can save thousands of dollars by employing a full-time or part-time profit protection officer. Businesses need to be able to rely on the integrity of their targeted gross profit percentage and then measure variables from that targeted percentage if they’re going to effectively manage their businesses.
The key role is to monitor what has been charged to:
• wastage;
• mark downs;
• cost of specials;
• stock discounted for team members and management; and
• cash-out refunds.
While measuring the authorised shrinkage and deducting it from the targeted gross profit percentage, management can then clearly identify what the unauthorised shrinkage is. In other words, theft.
Management can then implement strategies to reduce theft by customers and staff to better manage their business. This is part of a business advisory service accountants in 2015 could assist their clients with.
While measuring the authorised shrinkage and deducting it from the targeted gross profit percentage, management can then clearly identify what the unauthorised shrinkage is. In other words, theft.
Management can then implement strategies to reduce theft by customers and staff to better manage their business. This is part of a business advisory service accountants in 2015 could assist their clients with.
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Episode 020 Profit Protection
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