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Please use the following downloadable files to help your Printing Business save time and money.
(To view pdf files please use the link below to download FREE Adobe Acrobat Reader.)
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PDFs
The ABC's of Profits
As promised, go here to read and download our popular
July 2004 Column
Break-even
Analysis
Here is an easy-to-use spreadsheet for
calculating break-even sales
The Copier Analyst Ver. 06 (Excel Document)
A great spreadsheet for determining costs per copy and suggested selling prices
at specific desired profit levels
New BHR Calculator
(Excel Document)
A great new spreadsheet designed to help you establish budgeted
hourly rates;
This spreadsheet was revised 11-08 to incorporate help windows for
the data entry.
What to expect when hiring a consultant (PDF File)
Download Our FREE Sample Pressroom Production Log (PDF File)
Download Our FREE Art Production Log (PDF File)
Download of draft letter used for making inquiries of local printers to see
if they are interested in selling their business (PDF File) |
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Quick Printing Industry Standard Chart of Accounts
We frequently stress the critical importance of being able to compare your key financial ratios/percentages against other similar size firms. However, in order to do that it is necessary that everyone be on the same page when comparing percentages for categories such as cost of goods, payroll percentages and overhead expenses.
Consequently, approximately 20 years ago, PrintImage International (previously known as NAQP) adopted and established what we now refer to as an Industry Chart of Accounts.
That chart of accounts not only establishes a basic layout or standard format (sales, cost of goods, payroll, and overhead) for a profit and loss statement, but also specified the minimum expense "categories" that firms should attempt to breakout.
By adopting a standard chart of accounts, PrintImage International is able to survey the industry every two years and publish what has become an extremely valuable document known as the Industry's "Operating Ratio Study."
The 2004 Operating Ratio Study contains more than 75 pages of sample profit and loss statements, balance sheets and numerous charts and graphs outlining the financial performance of quick printing and copying firms throughout the U.S. This is an invaluable document that no firm should be without.
In any event, at the request of numerous individuals, we are posting below the sample chart of accounts recommended by PrintImage International along with a basic comparison (All Firms) between the top and bottom profit quartiles in our industry taken from the most recent Operating Ratio Study.
Feel free to use the format below. Please note, however, it would be a serious mistake to simply rely upon these two comparisons as the key or sole method or ratios for evaluating your firm. The 2004 Operating Ratio Study contains more than 200 comparisons based upon annual sales, number of locations, product mix, etc. Use this link to order your own copy of this valuable study. |
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We strongly suggest that you print out the following and use it as a guide.
Profit Leader Analysis - Sample Page
2000* Operating Ratio Study
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Low Profit Firms
0-25th Percentile
115 Companies
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High Profit Firms
76-100th Percentile
115 Companies
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| SALES |
$
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%
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$
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%
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| Printing Sales |
603,412 |
57.29 |
431,272 |
58.41 |
| Copying Sales |
194,214 |
18.44 |
138,927 |
18.82 |
| Color Copying Sales |
71,468 |
6.79 |
33,496 |
4.54 |
| Brokered Sales |
101,996 |
9.68 |
89,140 |
12.07 |
| Other Sales |
82,179 |
7.80 |
45,520 |
6.17 |
| TOTAL GROSS SALES |
1,053,269 |
100 |
738,355 |
100 |
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| COST OF SALES |
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| Paper |
144,655 |
13.73 |
88,890 |
12.04 |
| Copier Service Costs |
47,118 |
4.47 |
27,015 |
3.66 |
| Other Materials |
49,258 |
4.68 |
23,353 |
3.16 |
| Outside Services |
40,756 |
3.87 |
21,754 |
2.95 |
| Outside Purchases |
65,415 |
6.21 |
42,669 |
5.78 |
| TOTAL COST OF SALES |
347,202 |
32.96 |
203,681 |
27.59 |
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| PAYROLL |
352,128 |
33.43 |
197,453 |
26.74 |
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| OVERHEAD |
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| Accounting & Legal Fees |
7,615 |
0.72 |
5,161 |
0.70 |
| Advertising |
19,060 |
1.81 |
9,093 |
1.23 |
| Auto Lease and/or Depr. Pmts. |
6,036 |
0.57 |
3,659 |
0.50 |
| Auto Operating Expense |
8,156 |
0.77 |
4,520 |
0.61 |
| Building Rent |
46,909 |
4.45 |
29,363 |
3.98 |
| Depreciation |
52,799 |
5.01 |
21,101 |
2.86 |
| Franchise Fees |
9,580 |
0.91 |
6,047 |
0.82 |
| Interest |
18,243 |
1.73 |
6,292 |
0.85 |
| Lease & Rental Exp. - Copiers |
36,470 |
3.46 |
12,630 |
1.71 |
| Lease & Rental Exp. - Other Equip. |
10,437 |
0.99 |
5,037 |
0.68 |
| Office Supplies |
9,186 |
0.87 |
5,608 |
0.76 |
| Property and Liability Insurance |
5,735 |
0.54 |
3,620 |
0.49 |
| Repairs and Maintenance |
15,825 |
1.50 |
10,037 |
1.36 |
| Travel and Entertainment |
5,531 |
0.53 |
2,523 |
0.34 |
| Utilities |
14,725 |
1.40 |
8,176 |
1.11 |
| All Other Overhead Expenses |
74,248 |
7.05 |
26,569 |
3.60 |
| TOTAL OVERHEAD |
340,555 |
32.33 |
159,436 |
21.59 |
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| TOTAL COSTS |
1,039,885 |
98.73 |
560,570 |
75.92 |
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| NET OWNER'S COMPENSATION |
13,384 |
1.27 |
177,785 |
24.08 |
* Note that the data above is indeed taken from the 2000 Operating Ratio Study. Subsequent Operating Ratio Studies have incorporated two additional sales categories (DTP Sales and Bindery Sales) in addition to those shown above.
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Contact Information
Telephone: (321) 727-2444
Fax: (321) 727-2166
Address: 2110 South Dairy Rd., Melbourne, FL 32904
Contact: John Stewart at QKconsult@aol.com |
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