The Profit Recovery Platform provides trend analysis for your revenue and expenses. The analysis provides easy to digest financial charts with red and green visual coding to identify where there are opportunities for efficiency, cash flow and profits. By identifying Hidden Profits® you and your advisor can decide what actions are best for your company.
Check out some results from an actual Profit Recovery Analysis for a business client. This report example below is an overview of the year over year percentages converted to dollar value comparisons of this particular business. This company’s great performance is due in part to the owner’s understanding of his own numbers, cause and effect and how they affect the bottom line.
The chart below represents the net increase or decrease in both revenue and growth trends of the business. This isn’t a representation of total sales or expenses, but rather the change from the previous year’s numbers. You’ll see an increase in business revenues from future year vs. current year and a continued decrease in expenses.
The following graph represents the current “Hidden Profits®” and ongoing opportunities in our example company.
The first chart below displays the “Hidden Profits®” comparisons in each category, where there were hidden business profits uncovered based on the previous year’s performance. You’ll see a decrease in the “Hidden Profits®” in future year vs current year. This is a very favorable trend as this means the company is better managing the expenses with more money going to the bottom line. In the second chart, you’ll see the annual total comparisons in revenue, expense, owner return and hidden business profits for the past three years. As this business continues to grow, you’ll note that they’ve kept their expenses consistent, while decreasing the number of “Hidden Profits®” and increasing the owner return.
The final chart below displays the possible opportunity still available based on the company’s own performance averages. There’s still potential opportunity to decrease costs while increasing the business profit margin. This is a good performance tool for future forecasting.