Your Business Resource for Greenville Metro and Upstate South Carolina

Don't laugh – this is a question we hear all the time. Most businesses have a tax preparer, an accountant who keeps them straight with the IRS. But there's another type of accountant out there - the management accountant. Typically found only in large corporations, a management accountant is a vital part of a business unit, helping answer questions and providing information for decision-making.

For example, when the sales manager wants to run a profit-by-customer analysis, or marketing wants to do some price-volume break-even scenarios on a new product line, or the owner wants to know if it makes sense to buy out a competitor, they go down the hall to find the management accountant.

In many mid-size and small businesses, and in non-profit organizations, it is difficult to justify having a full-time management accountant. This is where A.T. LOCKE comes in – with management information services that are provided on an as-needed basis. "Total accounting" from bookkeeping to report generation to on-demand information, you can get your questions answered, can prep for a board meeting or bank loan, and can get the information you'd like to have to run your business, knowing that your data is accurate and reliable. You'll still need your tax preparer – and we can work with them (and your bookkeeper if needed) to ensure timely filings. But to make the numbers tell the story – you need a management accountant.

Back to the question – how do I know if I am making any money? First, ask yourself what the business does. What is the product or service delivered to the customer and how often is it delivered? Now, do the costs incurred to deliver that product happen at the same time as the delivery, or close to it? Can you match them up to see period-by-period what it took to deliver each product? If the product costs, period-by-period, are less than the revenues, the business may be making money.

Next, ask yourself what does it take to cover your overhead operating costs? These are expenses to run the business – rent, utilities, taxes, insurance, salaries for support staff – all the money you spend to open your doors each day, except for those costs directly related to making your product or service. Do the profits left over after direct product costs exceed the operating expenses? If they do, the business is probably profitable.

Don't put those reports in a drawer! If you'd like to know more about whether your business is making any money, call A.T. LOCKE for a free consultation.