Profit Solver is based on pure math. It does not change accounting; it uses accounting to determine what to charge to make a predetermined profit. It does this by taking income and expenses incurred and separating them out in to 3 categories; Labor, Equipment and Inventory.
To cover labor and overhead, each billable employee is billed out to cover themselves, their share of non billable employees, their share of over head and their share of profit based on their percent of the total billable employee cost. Businesses will know how they are covering their costs
For any individual or business based on pure labor, the P & L will be redefined as:
Profit Solver redefines the P & L into 3 profit centers where you control the profit in each center.
For any business using any combination of labor, equipment and inventory, the P & L will be redefined as :
In essence, Profit Solver takes revenues and expenses and organizes them into 3 categories. Through the services module, Profit Solver tracks labor , inventory, and equipment.
Inventory costs are deducted from Inventory revenue
Overhead associated with equipment is deducted from Equipment revenue
Labor and all other Overhead costs are deducted from Labor revenue
Accounting becomes more defined. You will know the exact makeup of profit through labor, equipment and inventory.
Profit Solver allows you to dial in the profit on labor, equipment and inventory to see the exact profit or loss in each fee, breakeven, or any future profit you desire.