P&L and Corporate Performance Maximization

The abovementioned definition and discussion of your income statement KPI allow to make the following statements (propositions) about your corporate performance:

1.      To maximize its free cash flow and financial value, your company must generate the optimal amount of gross sales

2.      Your company must develop and implement an adequate system for VAT risk management

3.      Your company must develop and implement a highly efficient system for optimizing your online sales tax

4.      Your company must develop and implement a highly efficient system for compensating and motivating your in-house salespeople and your outside sales agents (including, but not limited to), sales commissions

5.      Your company must develop and implement a highly efficient system for proper calculation of COGS based on accurate cost allocation. Ditto for Other Sales Expenses

6.      Your COGS, Other Sales Expenses and your Operating Expenses must be lean, but muscular

7.      You need to correctly account for both Non-Operating Revenues and Non-Operating Expenses

8.      Your company must develop and implement a highly efficient system for proper allocation of your Operating Expenses to all corporate objects that generate financial value and need a financial valuation model to estimate this value.

9.      Your company must choose and implement optimal depreciation, amortization and depletion schedules for your tangible and intangible assets (from your corporate income tax perspective)

10.  Your company must choose and implement highly efficient system for determining the market values for your tangible and liquid intangible assets

11.  Your company must develop and implement a highly efficient corporate income tax optimization system