Sales Are Not Profit
A $300,000 sales year does not mean the owner made $300,000. Sales are the starting point. Rent, wages, super, utilities, chemicals, insurance, software, merchant fees and other costs must be deducted before profit exists.
Money & Profit™
Accounting Made Simple™
Most garment care businesses do not fail because the owner is lazy. They fail because the owner is busy, cash is moving, bills are due, wages are paid, GST is collected, and nobody has separated what money actually belongs to the business.
The bank balance can look healthy while the business is carrying GST, PAYG, super, rent, supplier bills and utilities. Accounting Made Simple™ helps owners understand the difference between sales, cash, expenses, liabilities and true profit.
Plain-English Owner Education
What this means inside a garment care business.
DCME explains the business in the language owners use every day: cash, staff, customers, risk, equipment, profit and control.
Expenses Must Be Understood
Dry cleaning, laundry, alterations and shoe cleaning businesses carry costs that many owners underestimate: staff, rent, power, gas, water, detergent, spotting chemicals, packaging, hangers, repairs, insurance and equipment maintenance.
Accounting Is A Control Tool
Accounting is not just for tax time. It should help the owner know what happened this week, what bills are coming, what cash is safe to spend, and whether pricing or productivity needs attention.
The Owner Question
Do not only ask: how much money is in the bank? Ask: how much is still mine after GST, PAYG, super, rent, suppliers, wages and utilities are covered?
Simple Example
Annual Sales$300,000
Total Expenses$249,800
Operating Profit Before Tax$50,200
Safe-To-Spend CashOnly after liabilities are removed
Why this matters
Understanding creates better decisions.
When the owner understands the numbers, risks and operating pressure, the business can make better choices about pricing, staff, equipment, marketing and software.
FAQ
Common owner questions.
Is money in the bank profit?
No. The bank account may include GST, PAYG, super, rent money and supplier money.
Should a small business owner understand accounting?
Yes. They do not need to become an accountant, but they must understand the numbers well enough to make decisions.
What is the biggest accounting mistake?
Confusing sales or bank balance with profit.
Explore. Learn. Understand. Then decide.
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