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The most common financial metrics we ask companies to compare versus budget are gross revenue, cost of goods sold, gross profit, payroll expenses, net income (loss), cash burn, available cash and remaining runway.
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Government revenue is derived from taxes on net income and profits, payroll, property, goods and services, and international trade.
According to the World Bank's annual "Doing Business" study, a hypothetical medium-sized business in Brazil loses 41% of its profits to payroll taxes, one of the world's highest rates.
Profits and payrolls were rising, and the stock market was on a tear.
"This is one way they generate profit, through reducing payroll," Friedmann said.
I got extra profits to meet payroll, and hopefully I got a client who will reorder from me".
And in an economy where every nickel counts, expect a lot of stores to be picky about eating into profits with more payroll.
RadioShack, the No. 3 U.S. consumer-electronics retailer, reported a 24% rise in quarterly earnings, as slashed payroll costs and higher profit margins offset ebbing sales of computers and satellite TV systems.
The private sector must answer to corporate shareholders who have no appetite for hiring until they see profits attached to adding payroll.
Make no mistake that as the public becomes better informed on the causes of the current employment malaise, they will seek out leaders who can implement the reforms necessary to correct the imbalance between growing corporate profits and declining payrolls.
Demand has waned for Intuit's small-business accounting software, leading the company to trim sales targets and focus on profit from newer products like payroll processing.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com