Every company is a structured set of total oil and gas company canada whatsapp number processes whose total cost is less than the value of the sales generated. We can divide the processes that constitute costs into external and internal. The former are the result of services or products purchased on the market, while the latter are the sum of the labor costs of the teams, tax surcharges, workplace equipment and administration and management costs.
The limit of the company's development is the point where internal and external costs are equal . If a service can be purchased on the free market at the same price or cheaper, there is no point in maintaining internal staff.
In other words, a company uses the order of its processes to generate products or services that are cheaper than the market price. The greater the order, the lower the internal costs and, therefore, the possibility of obtaining a higher margin on sales.
Improving business management
The tax principle states that an expense must be related to a sale in order to be taxable. This logic is not limited to settlements with the Tax Agency. All expenses incurred by a company must be inextricably linked to the sales process being carried out.
Sometimes companies tolerate cost groups that have no direct justification. These may be decisions with different motivations. For a good advisor, a consultant, this is a "red flag", a signal to carry out a process analysis and to show whether the cost items should be kept or eliminated. Branches of companies that are permanently unprofitable always contribute to a decrease in their dynamics, a deterioration in their market position and an underestimation of their profits.