Where did the idea for TTNY come from?
Many years ago while working with a marketing agency as Financial Accountant it became apparent that there were issues with project costs and sales being married up.
Project quotations were never measured against the final invoice and the cost of the sale.
The result of this was the business was seeping money quite badly in some areas.
A new project ‘job bag’ system was instigated into the business which resulted in some horrendous findings.
Quotations were being raised by certain individuals and when the cost was measured for many projects it was discovered that the business was losing money in some cases up to 50% .
Unfortunately, and this is my bone of contention, companies do not make sales people aware of the costs that are attributable to the sale. This can often be due to the fact that they do not want to share with their staff how much profit is made. This is my view is a false economy. If staff are aware of the consequences that losing money on projects can have on the business in general, changes can be made.
Tags: accountants, costs, economy, financial, forecasting, project, quotations