Virtual CFO Services for Digital Agencies - Part 2
The following video prepared by our Virtual CFO services division for digital agencies. This video is the second in a two part series.
The first video discussed the top level financials.
In this video we break down the metrics on a more finite level that will ultimately feed up into your top level analysis.
It is all about profit.
For your company to be profitable, you must budget at the top level (company level) and production level (employee level). The production, or employee level, budget will ultimately feed up to the top level budget.
The production budgets can then be analyzed and determined what area or employees are the most profitable for the company.
Conversely, this type of budgeting allows for termination of areas that are not performing.
In this video we will go over the employee/production level. We cover:
- The importance of the production employee budgeting.
- How to utilize the production employee budget to start using the financial levers.
- The impact 1 hour of chargeable time per week has on the actual net income of your company.
- We touch base on the importance of production employee budgeting, from salary to burden.
- Finally, we will examine the overall percentage of net income you need to have to break even.