In this episode, Sarah Delevan walks Chelsea through the nuances of profit margin, specifically challenging the commonly accepted 50% target in the food industry. She shows that this one-size-fits-all approach doesn't suit every business and can lead to cash flow struggles and increased reliance on debt.

In this episode, The Good Food CFO, Sarah Delevan breaks down the concept of cost of goods sold (COGS) and its importance in understanding the financial health of your business. We explore the differences between accrual-based accounting and cash-based accounting, and how each method affects the calculation of COGS. We also clarify the distinction between unit COGS and business COGS, and the significance of knowing both.