Pricing your goods and services can be tricky, but the current economic climate makes tracking whether they are profitable, more important than ever.

Rising costs mean a product could have been profitable in March, but is now costing your business money to produce and sell in August.

Increasing salaries, fuel, and energy, are all big drivers behind increasing costs. Add in rising interest rates, and most businesses will be spending a lot more by the end of the year than they were in January.

Getting started with enterprising in business

This is why I always bang the drum about enterprising on any accounting software. You need to know how each individual part of your business is performing.

I can guarantee there are businesses whose prices are the same now as they were at the start of the year, and this will be causing some to be making goods or providing services at a loss.

If you don’t track how each good and/or service is performing, how do you know where to set your pricing?

A great starting point is to calculate the break-even point for each product and service.

This, and so much more, is possible in accounting softwares like Xero.

If you are interested in learning more about your business with this cloud accounting software, you can read our guide to Xero and even speak to us about our Xero migration service, to get started.