Control Benefits Costs by Measuring and Monitoring P&L Creep
Isn’t it amazing how overhead expenses can inch ahead, and you really miss the fact that not only do they cost more money, but they’re consuming an increasing percentage of your profit and loss statement? One of the smart things managers do is to compare overhead items, such as fringe benefits, liability insurance, and workman’s comp insurance, as a percentage of their gross sales. That way you can know what the percentage was last month, and you can watch that it doesn’t escalate month after month. It’s easy to ignore when such an expense becomes 2 percent of your gross, then 2 1/2 percent, then 3 percent, then 3 1/2 percent.
“Watch out for that creep!” Write that on ...