Want to increase profit in your business? The answers lies in tracking the labor productivity. When labor is being used efficiently, profits increase. But when we have waste or inefficiency in the system, profits will be down.

The way we track labor productivity is through the Labor Efficiency Ratio. It is the number one metric to track if you want to be more profitable. Don't know how to measure it? That's what this video will show you!

Hannah will explain the labor efficiency ratio and also show you reallife examples of calculating this ratio in a few different ways. She will also help you identify some pitfalls that some business owners fall into when trying to calculate this themselves.

Mentioned in this video:
Interview with Greg Crabtree:    • Interview with Simple Numbers Straigh...  
Podcast with Greg Crabtree:    • Keeping It Simple With Greg Crabtree  
Simple Numbers Book: https://www.claracfo.com/simplenumbers

To learn more about CFO services for B2B services providers making over $1M in annual revenue, go to: https://claracfo.com/cfoservices/'>https://claracfo.com/cfoservices/

Need an accounting system? We use Quickbooks Online with clients and recommend it as the best accounting system for small businesses. Sign up to get a discounted subscription for 12 months! https://claracfo.com/QBO'>https://claracfo.com/QBO

‍♀‍Got Employees? Talk to ADP! They can help you if you are a small business owner or an accountant or advisor who works with small businesses. Learn more here: https://claracfo.com/adprun'>https://claracfo.com/adprun

Pay vendors any way they want and get paid faster! Accept credit cards without paying merchant fees! Melio is a fantastic payments solution for every small business! https://claracfo.com/melio'>https://claracfo.com/melio

(As an affiliate or referral partner for these companies, I may earn rewards from qualifying purchases)

Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/

Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.




CODE: MB014PH0URNYAUO