Simplified Profitability Book

• Paperback: 111 pages
• Publisher: knAct, LLC, 2013
• Language: English
• ISBN-13: 978-0-9884746-0-4
• Product Dimensions: 10 x 7 x 0.5 inches

Introduction

This book is written in order to answer two basic questions:

• What is the actual contribution to profit by each organization (business unit)?
• What are the specific profit improvement opportunities within each organization?

This book is directed primarily to financial institutions.

Those that would be interested in this book would be responsible officers interested in identifying the contribution to the bottom line by the organizations within the bank. They would then take action based on this information.  This is usually the CEO, COO or CFO but not limited to this level.  It will often depend on the size and the culture of the institution.

The book’s objective is to describe the steps necessary to develop and implement an Organization Profitability Reporting & Analysis system that is an activity based cost accounting system.  The system will have full absorption and an easily understood charge out of service centers like loan operations and core processing; it will also have an easily understood funds transfer method.  The system will balance to the bank’s general ledger in a logical and practical way.