COR Tax & Bookkeeping

A $1,000 sale doesn't mean your business gained $1,000.

One number worth understanding is your contribution margin.

Simply put, it's the revenue remaining after variable costs associated with generating that revenue are deducted.

For example:

Revenue: $1,000
Variable costs: $400
Contribution margin: $600

That $600 is what's available to help cover fixed operating costs—and, after those are covered, contribute toward profit.

Why does this matter?

Because it can help business owners evaluate:

• Pricing
• Sales volume
• Product or service mix
• Promotions and discounts
• How additional sales may affect profitability

Don't just ask how much you're selling. Understand what each sale contributes.

💬 Want to understand the numbers behind your business decisions? DM “CFO.”

Sometimes the hardest part of faith is the space between praying and seeing.

You prayed—but nothing seems different.

You asked God for direction—but the answer isn't clear yet.

You believed—but the situation still looks the same.

Don't mistake what you cannot see for God doing nothing.

There are things God can be arranging, preparing, protecting, and developing long before you understand what He's doing.

📖 “For we live by faith, not by sight.” — 2 Corinthians 5:7

Your faith doesn't have to depend on visible evidence.

Keep praying. Keep walking. Keep trusting God.

It's easy to fill every available hour with something that needs to be done.

Another task. Another meeting. Another responsibility.

But some of the most important parts of life will never appear on a to-do list.

A conversation with someone you love.
Dinner without checking your phone.
Playing with your kids.
Calling your parents.
Doing something simply because it makes you happy.

Productivity has its place.

But a meaningful life needs more than completed tasks.

This weekend, make room for something that matters—not because it's productive, but because it's important.

A business can be profitable and still feel constantly short on cash because of timing.

Think about the journey:

Cash goes out → product/service is delivered → sale happens → customer pays → cash comes back.

The Cash Conversion Cycle (CCC) is a financial metric commonly used to measure how long cash is tied up in operations before being converted back into cash.

For businesses with inventory, the traditional calculation considers:

Days Inventory Outstanding + Days Sales Outstanding − Days Payables Outstanding

Why should an owner care?

Because the longer cash stays tied up, the more working capital the business may need to keep operating.

Depending on your business model, improvements might come from:

• Collecting receivables faster
• Managing inventory efficiently
• Negotiating appropriate vendor terms
• Improving billing processes

Profit matters. But the speed at which cash moves through your business matters too.

💬 Want better visibility into how cash moves through your business? DM “CFO.”

Your operating expenses increased by $20,000.

Is that bad?

You need more context.

If expenses increased while revenue remained flat, that's one story.

If expenses increased while revenue grew significantly faster, that's another.

One way to add context is to look at expenses as a percentage of revenue.

For example:

Business A:
$50K expense ÷ $100K revenue = 50%

Business B:
$60K expense ÷ $150K revenue = 40%

Business B spent more dollars—but the expense represented a smaller percentage of revenue.

That's why looking only at whether an expense increased or decreased can be misleading.

Analyze the relationship between the numbers.

💬 Want financial reporting that gives you more than totals? DM “CFO.”