In this lesson, you will learn how to generate a profitability analysis in Parsimony.com, a cloud-based accounting software.
A profitability analysis is an important tool for business owners to understand the profitability of their business. It helps to identify areas where the business is generating a profit and where it may be incurring losses. Parsimony.com allows you to generate a profitability analysis by analyzing the data from the general ledger and sales register.
To generate a profitability analysis in Parsimony.com, follow these steps:
- Login to your Parsimony.com account and navigate to the “Reports” section.
- Click on the “Profitability Analysis” option.
- Select the date range for which you want to generate the report.
- Choose the level of detail you want to see in the report, such as product, service, or customer.
- Customize the report by selecting the columns you want to include in the report.
- Click on the “Generate Report” button to generate the profitability analysis.
The report will display a summary of the profitability of your business for the selected date range, broken down by the level of detail you selected. It will show the total revenue, cost of goods sold, gross profit, and net profit. You can also see the percentage of gross profit and net profit relative to revenue.
By analyzing the profitability analysis, you can identify areas where your business is performing well and where it needs improvement. This will help you make informed business decisions to improve the profitability of your business.