Strategy: Generate Extra Revenue While Leveraging Existing Overheard

How you organize your income statement is very important. Often, selling expenses are shown as part of operating expenses, which camouflages the overall selling expense-to-sales ratio and makes these expenses much more difficult to manage. I prefer to see direct selling expenses broken out on income statements so the overall ratio can be managed. Managing your selling expense-to-sales ratio is just as important as tracking gross profit margin on a monthly basis — these expenses can easily get out of hand if they’re not managed as a percentage of sales.