20 O U T D O O R P O W E R E Q U I P M E N T w w w. o u t d o o r p o w e r e q u i p m e n t . c o m
P
rofit Pillar Number Five is Pretax Net Profit,
which is defined as "money left over after
paying operating expenses." The dichotomy
of Profit Pillar Number Five is the opposing
force between business owner(s) working long
hours all year to produce a positive pretax net profit and the
IRS representative seeking a declared portion.
Be advised that I am not a Certified Public Accountant.
However, business owners do not need to be a CPA to
know the differences between profit and loss, cause and
effect, and how to take corrective action. My corporate life
responsibilities included moving products produced in the
USA to foreign countries for distribution. In reverse order,
I was responsible for importing products into the USA for
distribution throughout North America. Participating in
these activities is cause for being challenged by the IRS. I
won some battles and lost some battles. My CPAs "J&C" have
been great defenders and representatives.
As an elective, I took accounting and bookkeeping
not realizing the subject would become a dominant force
throughout my corporate life and the decades of owning and
operating Jim Yount Success Dynamics LLC (JYSD).
In keeping informed, I have on my desk a copy of
Accounting for DUMMIES by John A. Tracy, CPA. Between
the covers are 386 pages. I recommend purchasing a copy
and assigning time to become familiar with certain subjects.
At the front of the book, turn to "Contents at a Glance" and
the "Table of Contents" and review the information. Then,
turn to page 353 (in my copy) and invest time in reading the
"Glossary, Slashing Through the Accounting Jargon Jungle."
I share the preceding few paragraphs for the following
reason: It is the business owner's highest priority to
FEATURE STORY
By Jim Yount
Five keystone pillars of profit (Part VI):
Profit pillar number five: pretax net profit
Sixth article in a series
It is the business owner's
highest priority to understand
"the only way to keep score in
business is to count the money."
