If you’re running multiple businesses within a single business entity or a business that generates sales by connecting with different businesses, I recommend managing the accounting for each separately. For example, if a car rental company also engages in car leasing, try to maintain distinct accounts for the rental and leasing sectors. This approach increases the chances of uncovering hidden costs or mistakes in resource allocation. In business, specific attributes necessitate this separation, leading to independent costs and improved profit structures. Neglecting this reality can result in bankruptcy without fully understanding the reasons behind it. The foundation of success is to avoid failure. - Joseph’s “just my thoughts”
If a New Zealand fisherman catches a seabream in New Zealand, he makes a profit of $9 per kilogram, but if a tourist catches it, $88 goes back to New Zealand. This is because to fish a seabream, the tourist has to spend money on flights, hotels, and all sorts of rentals. The opportunity cost and value-added will change as B2B becomes B2C. - Joseph's "just my thoughts"