office of the cfo presented by: brett redd, cpa. save time and money
TRANSCRIPT
![Page 1: Office of the CFO Presented by: Brett Redd, CPA. Save Time and Money](https://reader034.vdocuments.site/reader034/viewer/2022042717/56649e155503460f94affc79/html5/thumbnails/1.jpg)
Office of the CFOPresented by: Brett Redd, CPA
![Page 2: Office of the CFO Presented by: Brett Redd, CPA. Save Time and Money](https://reader034.vdocuments.site/reader034/viewer/2022042717/56649e155503460f94affc79/html5/thumbnails/2.jpg)
Save Time and Money
KNOWNYOU
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<My Heading>
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Office of the CFO
Confidence
Profit
Cash flow
Compliance
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Confidence
FIELD
Bankers
Merchant providers
Investors
Regulators
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Profits
What is the VERY most important driver of profitability in direct sales?
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Profitable Sales
0% 5% 10% 15% 20% 25% 30% 35% 40%
PROFITS
GEN & ADMIN
SELLING
PRODUCT
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Dialing It In
0% 5% 10% 15% 20% 25% 30% 35%
PROFITS
GEN & ADMIN
SELLING
PRODUCT
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Leading Indicators
Sales revenue
New consultants/reps
Number of parties/size
Activity percentages
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Profits vs. Cash Flow
Revenue 350,000 375,000 400,000 Product costs (80,000) (275,000) (29,500) Commissions (118,700) (122,500) (131,200) General & Admin (112,000) (116,250) (120,000) Net Income 39,300 (138,750) 119,300 Net Margin 11% -37% 30%
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Cash Flow Killers
Inventory
Merchant reserves
Overhead
Growth
Must forecast both profitability and cash
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Compliance
Multi-state sales tax
Foreign income tax
Gross receipts tax / use tax
1099 and payroll taxes
Merchant covenants
Bank covenants
Business licensing
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Sales Tax Mayhem
8,000+ taxing jurisdictions
Nexus and direct selling
Reseller permits
Trust funds of the state
Remember – it is a pass through
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Sales Tax Set Up
1) Research – product, price, customer type
2) Rates
3) Set up software
4) Register
5) Collect and remit