Your Accounting Scorecard
This tool compares your numbers—like Revenue Adjustments, COGS, Overhead, Marketing, and Net Income—against industry benchmarks.
You’ll answer a few quick questions, and we’ll show how you compare to similar companies.
Every business is unique, but this snapshot can reveal strengths, gaps, and opportunities to level up.
How do your finances stack up?
What was your annual gross revenue last year?
Sweet! Fully Accountable serves clients in all of these ranges. The majority of companies used for this analysis fall in the $10M - $25M range.
What was your annual percent of Refunds?
< 1%: That's amazing! People must love what you sell. You're in the top 10% of similar companies (top meaning you're keeping those refunds nice and low)
1%-2%: Well done! You are crushing the refund game. Less than 20% of clients are doing better than you.
2% to 4%: Nice! You are right on track. This is pretty average. You're right in the middle of the pack.
4% to 6%: Not bad! This is slightly above average but you are still doing better than more than half of similar companies.
6% to 8%: You're doing okay but make sure those don't keep creeping up. You're still doing better than a third of similar companies.
8% to 10%: That's a little high. You could benefit from bringing that down. About 80% of similar companies are coming in with lower refund rates than you.
10%+: Oof. That's pretty high. It might be the type of product but you should look into how to bring that down as much as possible. Only about 8% of similar companies have refund rates over 10%.
Ideally, refunds should fall below 4% but some companies comfortably sit above that based on the nature of the product they sell. If your refunds are high, whether naturally or due to unsatisfied customers, make sure you aren't losing too much in other areas of revenue adjustments.
What was your annual percent of Discounts?
< 1%: Nice! 50% of our clients also keep a low rate of discounts like yourself.
1-5%: Nice! 12% of our clients also have a discount rate between 1-5%.
5-10%: Nice! 13% of our clients also have a discount rate between 5-10%.
10-15%: Nice! 13% of our clients also have a discount rate between 10-15%.
15%+: Nice! 12% of our clients also have a discount rate between 15%+.
Unlike refunds and chargebacks, you have the power to determine how much you offer in terms of discounts. Therefore, discount rates are largely dependent on a specific business model and just because your discount rate is higher than someone else, it does not mean you are worse off. Just make sure if you are offering regular, substantial discounts, that your net revenue once you take out those discounts is still enough to cover your COGS and other expenses.
What was your annual percent of Chargebacks?
< 0.1%: Well done! 25% of similar companies are in line with this too.
0.1%-0.5%: You are in good shape! About a third of similar companies land here too.
0.5%-1%: Not terrible. About 8% of our clients land in this range while 58% are below this.
1%-2%: Keep an eye on this. This is on the high end as two thirds of similar companies come in lower than this.
2%-5%: This is pretty high. About 75% of similar companies stay below this rate.
> 5%: This could be problematic if you aren't watching it closely. 90%+ of similar companies fall below this.
Chargebacks run a risk for companies and a chargeback rate that is too high can result in merchant accounts being shut down. Try to keep these less than 0.5%.
Think about what goes into the sale of your product. This could be shipping, warehousing, R&D, and would definitely include the cost of the product itself. Altogether, what % of your revenue did you spend on COGS last year?
<20%: That's impressive. You run a tight ship! Less than 10% of similar companies have COGS that low.
20-30%: Nicely done! That's lower than almost 80% of similar companies.
30-40%: This is right where you want to be. About 40% of companies fall in this range as well.
40-50%. A little high, but you are still doing better than about 30% of similar companies.
50-60%. This is higher than about 70% of similar companies. You might want to look for opportunities to reduce costs or raise prices on products.
60%+: This is higher than about 85% of companies. It's high, so it would be a good idea to see what you could pull back. If you can't, make sure your overhead is as trimmed as it can be.
What percentage of your COGS is just attributable to the product cost?
< 10%: Wow! Way to make the most of every dollar of that sale.
10-20%: Great! That's a nice and trim percentage.
20-30%: Not bad! Only about 15% of companies have a higher % of that but almost 50% fall right in this range.
30%+: Only 15% of similar companies spend more than 30% of their revenue on COGS. If you're slightly over 30%, that is fine. But watch out if that starts to creep much higher.
A good percentage to aim for is less than 18% of your revenue going to product cost with no more than 40% being spent on COGS as a whole. However, you can have higher COGS so long as it is balanced with lower spending in overhead.
Take a look at what you spend on general and administrative costs, labor, occupancy, sales and marketing, IT, and other expenses that are associated with running the business. Each business will have a range of expenses in these categories and, while there isn't an overall goal for these expenses, there are some general benchmarks for individual categories.
What was your annual percentage of revenue spent on general and administrative costs?
< 2%: Crushing it!
2-4%: Well done!
4%+: Not bad (as long as we aren't talking significantly above 4%)
A good goal is to keep G&A under 4% though some months, that will fluctuate.
What was your annual percentage of revenue spent on labor?
< 8%:Great! This is below our recommended average but as long as you're people are being paid well, this is an efficient percentage.
8-12%: Awesome! This is right in line with what we recommend.
12%+: We recommend keeping this under 12 but you are likely okay as long as you aren't way overshooting this.
Try to keep your labor to revenue percentage between 8-12%.
What was your annual percentage of revenue spent on IT?
< 2%: Woo hoo!
2-5%: Are you a tech heavy company? Might be worth taking a look at your subscription expenses and see if you can bring this down.
5%+: A great way to bring this down is to evaluate your tech subscriptions. Make sure you are utilizing all the ones you are paying for and look for ways to reduce the costs of the ones you are like removing old users.
Your IT spending should be below 2%.
What was your annual percentage of revenue spent on occupancy?
< 1%: Nicely done.
1-5%: Do you have a lot of people working in-house? Investing in an in-house culture could be a great strategy for your company. Just make sure this isn't unnecessarily high.
5%+: Some real estate markets are expensive, we get it. But you might want to look into how you can bring this down to have more margin for other items.
Your occupancy spending should be below 1%.
What was your annual percentage of revenue spent on sales and marketing?
< 15%: Wow! That's low. If you are getting a good return on your adspend, you are crushing it. However, you could test bringing this up and seeing if your revenue responds accordingly.
15-35%: This is great. Not too high but you are likely maximizing your marketing.
35%+: If you're over 35%, you might want to evaluate if your spend is going to the right places that actually bring in sales. Take a look at miscellaneous expenses that have a low return and your paid media channels that are performing worse than others.
Your sales and marketing spending should be around 35% of your revenue with Paid Media (socials, search engine marketing, etc) taking up 25-30% with the additional 5-10% spent on other expenses that support your marketing efforts.
What was your average net income percentage last year?
0%: There are seasons where businesses see a loss, it's okay. Whether you are laying the groundwork to scale or you are facing new challenges to your business, our finance and accounting experts at Fully Accountable are here to walk with you, help you understand where your money is going, and develop and implement strategies to build a more sustainable, profitable business. Ultimately, we want to help you get to a place of not just being profitable, but bringing home a steady 15% profit margin.
0-5%: You're just making a profit and that is okay.
There's room to grow! We recommend aiming for a 15% profit margin and our finance and accounting experts at Fully Accountable are here to help you understand where your money is going and make those small but crucial changes to bring you to a place of greater profitability.
5-10%: Not bad! We recommend aiming for a 15% profit margin and you are not far away.
But sometimes, it can be hard to find those opportunities to raise your profit by that extra 5-10%.Our finance and accounting experts at Fully Accountable are here to look for those opportunities that are easy to overlook that can help bring you to a more sustainable place.
10-15%: Great job! We recommend aiming for 15% and you are right about there.
Need some help figuring out how to take that over the finish line? Our finance and accounting experts at Fully Accountable are here to look for those opportunities that are easy to overlook that can help bring you to a new level of profitability.
15-20%: Awesome! We recommend aiming for 15% and you've hit that.
There are lots of opportunities you can take advantage of when you have a steady profit margin above 15%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
20%+: Amazing! We recommend aiming for 15% and you're exceeding that – way to go!
There are lots of opportunities you can take advantage of when you have a steady profit margin above 15%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
Connect with an expert to learn how we've helped thousands of E-Commerce businesses like yours achieve financial success.
Schedule Your Expert CallWhat was your annual gross revenue last year?
Sweet! Fully Accountable serves clients in all of these ranges. The majority of companies used for this analysis fall in the $1M - $20M range.
What was your annual percent of Refunds?
< 1%: That's amazing! People must love your product. You're in the top 12% of similar companies (top meaning you're keeping those refunds nice and low)
1%-2%: Well done! You are crushing the refund game. Less than 13% of clients are doing better than you.
2% to 4%: Nice! 25% of similar companies had a similar refund rate and you are still doing better than average.
4% to 6%: Not bad! This is slightly better than our average in this category which is just over 7%.
6% to 8%: Our average for this category is 7.4% so you are right in line with that.
8% to 10%: This is just barely over the average. 75% have a refund rate lower than this.
10%+: You're among the 10% of companies with the highest refund rates. You would benefit from trying to bring that down so you keep more of your revenue on your bottom line.
Ideally, refunds should fall below 5% though on average, companies in this category averaged just over 7%. If your refunds are high, evaluate the reason why customers are refunding and look for ways you can increase satisfaction in the product and discourage refunds.
What was your annual percent of Chargebacks?
< 0.1%: Well done! Keep up the good work keeping this nice and low. 25% of similar companies are doing the same.
0.1%-0.5%: You are in good shape! About 12% of similar companies land here too.
0.5%-1%: Not bad. Our average chargeback rate from similar companies falls just under 1% so keeping the rate below 1% is a great place to be.
1%-2%: Keep an eye on this. This is slightly above average and the closer it creeps to 2%, the more at risk you may be.
2%-5%: This is about twice as high as the average in this category and only 10% of companies had a higher chargeback rate than this.
> 5%: This could be problematic if you aren't watching it closely. 90%+ of similar companies fall below this.
Chargebacks run a risk for companies and a chargeback rate that is too high can result in merchant accounts being shut down. Try to keep these less than 1%.
Think about what goes into the sale of your product. This could be merchant fees, web hosting, and production. Altogether, what % of your revenue did you spend on COGS last year?
<3%: That's impressive. You run a tight ship! Less than 25% of similar companies have COGS that low.
3-5%: Nicely done! That's lower than 50% of similar companies and right below our average overall.
5-7%: This is similar to about 25% of companies in this category and is just slightly above our average of 5%.
7-10%. A little high, but you are still doing better than about 12% of similar companies.
10%+: This is higher than about 88% of similar companies. You might want to look for opportunities to reduce costs or raise prices on products if it is costing you too much to produce.
One of the advantages of an e-learning product is the low COGS. While it takes some investment to build and host your product, COGS are typically much lower than your ecommerce counterparts, allowing for a higher margin on your bottom line. Our companies averaged 5% of their revenue going to COGS which is a solid place to aim.
Take a look at what you spend on general and administrative costs, labor, occupancy, sales and marketing, IT, and other expenses that are associated with running the business. Each business will have a range of expenses in these categories and, while there isn't an overall goal for these expenses, there are some general benchmarks for individual categories.
What was your annual percentage of revenue spent on general and administrative costs?
<5%: Crushing it!
5-10%: Well done!
10%+: Not bad (as long as we aren't talking significantly above 10%)
Our clients averaged just over 7% in G&A. It's always a good idea to evaluate costs in these categories. While some fluctuate month to month, look for ways you can trim unnecessary expenses.
What was your annual percentage of revenue spent on labor?
<15%: We typically recommend spending between 15-35% on labor but this may be fine so long as your team is being paid fairly.
15-35%: Awesome! This is right in line with what we recommend.
35%+: We recommend keeping this under 35% and if you are struggling with your bottom line, this might be a good opportunity to reign in some costs.
Labor and paid media are typically going to be your two largest buckets in overhead and with low product cost for an e-learning company, you can afford to pay your people at a decent percentage of your revenue. We recommend falling between 15-35% for labor and, on average, our clients came in around 30%.
What was your annual percentage of revenue spent on IT?
<2%: Woo hoo!
2-5%: Nice! This is right in line with our average from similar companies.
5%+: A great way to bring this down is to evaluate your tech subscriptions. Make sure you are utilizing all the ones you are paying for and look for ways to reduce the costs of the ones you are like removing old users.
On average, companies in this category spend 3.3% on IT.
What was your annual percentage of revenue spent on occupancy?
<1%: Nicely done.
1-3%: Do you have a lot of people working in-house? Investing in an in-house culture could be a great strategy for your company. Just make sure this isn't unnecessarily high.
3%+: Some real estate markets are expensive, we get it. But you might want to look into how you can bring this down to have more margin for other items.
Companies in this category spent on average just over 1% on occupancy costs.
What was your annual percentage of revenue spent on sales and marketing?
<15%: Wow! That's low. If you are getting a good return on your adspend, you are crushing it. However, you could test bringing this up and seeing if your revenue responds accordingly.
15-35%:This is great. Not too high but you are likely maximizing your marketing.
35%+: If you're over 35%, you might want to evaluate if your spend is going to the right places that actually bring in sales. Take a look at miscellaneous expenses that have a low return and your paid media channels that are performing worse than others.
Typically, at least 35% of your sales and marketing spend should be going to paid media that directly generates revenue. While we recommend aiming to maximize your spend around 15%, our clients on average are spending 38% of their revenue on paid media and marketing combined so if you're struggling to bring that down, you're not alone.
What was your average net income percentage last year?
<0%: There are seasons where businesses see a loss, it's okay. Whether you are laying the groundwork to scale or you are facing new challenges to your business, our finance and accounting experts at Fully Accountable are here to walk with you, help you understand where your money is going, and develop and implement strategies to build a more sustainable, profitable business. Ultimately, we want to help you get to a place of not just being profitable, but bringing home a steady 30% profit margin.
0-10%: You're just making a profit and that is okay.
There's room to grow! We recommend aiming for a 30% profit margin and our finance and accounting experts at Fully Accountable are here to help you understand where your money is going and make those small but crucial changes to bring you to a place of greater profitability.
10-20%: Not bad! We recommend aiming for a 30% profit margin and you are not far away.
But sometimes, it can be hard to find those opportunities to raise your profit by that extra 10-20%.Our finance and accounting experts at Fully Accountable are here to look for those opportunities that are easy to overlook that can help bring you to a more sustainable place.
20-30%: Great job! We recommend aiming for 30% and you are right about there.
Need some help figuring out how to take that over the finish line? Our finance and accounting experts at Fully Accountable are here to look for those opportunities that are easy to overlook that can help bring you to a new level of profitability.
30-40%: Awesome! We recommend aiming for 30% and you've hit that.
There are lots of opportunities you can take advantage of when you have a steady profit margin above 30%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
40+: Amazing! We recommend aiming for 30% and you're exceeding that – way to go!
There are lots of opportunities you can take advantage of when you have a steady profit margin above 30%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
Connect with an expert to learn how we've helped thousands of E-Learning businesses like yours achieve financial success.
Schedule Your Expert CallWhat was your annual gross revenue last year?
Awesome! Fully Accountable serves clients in all of these ranges. The average annual revenue for companies in this analysis is around $13M.
Revenue adjustments look different for agencies than for other digital companies. Typically you see very little refund and discounts as pricepoints are established based on a client's budget and services incurred are often not refundable. Still, it's important to make sure you aren't allowing for too many adjustments over time. Looking back at the last year, what was your combined percentage of revenue lost to refunds, discounts, and chargebacks?
0%: Crushing it!
0-0.5%: Excellent! 60% of similar companies also kept their adjustments this low.
0.5-1%: Nice! This is slightly above average but still within the target range we would recommend.
1-2%: Not bad! This is a good place to land but try to make sure it doesn't creep up more.
2-5%: This isn't bad overall, just make sure these adjustments are coming from strategic moves of giving people discounts and refunds in good faith and aren't due to too many chargebacks which can put your company at risk.
5%+: This is on the high side, especially if this is coming from chargebacks and refunds. You may want to look at why people are requesting money back and see if there's an improvement you can bring to your service.
Ideally, revenue adjustments should stay below 2.5% for agencies with the fewest adjustments coming from chargebacks.
The COGS portion of your P&L may look differently depending on your business model and how you chose to set up your chart of accounts. For example, agencies that rely on employees to provide their service may allocate part of labor to the cost of goods to account for production. Other companies that rely on media buying may have paid media accounts in the COGS.
If your company relies on staff to provide a service, what percent of your revenue goes towards production labor?
<20%: Wow, that's low!
20-40%: Nicely done! We recommend aiming for 25-40% of your revenue spent on labor.
40-60%: About a third of similar companies landed here as well. While we recommend aiming for the low end of this range, this still leaves you with a decent margin for other expenses.
60+%. This is high but nearly two thirds of similar companies landed here as well. You can make things work while spending 60%+ on labor but you'll need to make sure you are as lean as possible on your other expenses.
Our service does not rely on production labor.
If you rely on production labor, we recommend spending 25-40% of your revenue on it. However, many companies land between 55-70% which may seem high but is doable as long as you are diligent to keep other expenses down. If you don't rely on production labor, you will want to keep your labor around 10-20% of revenue.
If your company relies on media buying or another purchase for your service, what percent of your revenue do you spend on those COGS?
<20%: Nice! That's low and may represent that your service is not fully reliant on purchasing. Just make sure your COGS and labor are in balance and combined aren't accounting for more than 70% of your revenue.
20-40%: Great! This is still pretty low and a good indication that you have a lot left over to put towards other expenses.
40-60%: This is a good sweet spot as you are investing in what you need to for production but you are leaving a good margin left over for other expenses.
60+%. This is high though several similar companies do function effectively at this rate. If you are spending 70% of your revenue on COGS, just make sure your other expenses are as lean as possible to be able to allow for a profit.
Our service does not rely on purchasing in this way.
What is “normal” for one company in this area might be abnormal to others. So long as you are keeping 30% available for other expenses after factoring in COGS, you can still land with a profit no matter if those COGS are being spent on employees or purchasing. We know companies are not a “one-size-fits-all” and that's why we are here to help tailor solutions for maximizing a profit to fit your unique needs.
Take a look at what you spend on general and administrative costs, occupancy, sales and marketing, IT, and other expenses that are associated with running the business. Each business will have a range of expenses in these categories but as a whole, you should try to keep these as lean as possible.
What was your overall percentage of your revenue spent on occupancy, IT, sales and marketing (excluding paid media), and general and administrative costs last year?
<5%: Crushing it!
5-10%: Well done!
10-15%: Not bad!
15%+: This is higher than we recommend but you aren't alone. Many companies struggle to keep these expenses below 15%.
We recommend aiming for around 10% spent on overhead and, of course, the leaner the better. If you are struggling to keep it low, take a look at some expenses that you may not even need. A great place to start is evaluating your IT expenses and seeing if there are any unused subscriptions or payments that you can lower by managing the number of users.
What was your average net income percentage last year?
<0%: There are seasons where businesses see a loss, it's okay. Whether you are laying the groundwork to scale or you are facing new challenges to your business, our finance and accounting experts at Fully Accountable are here to walk with you, help you understand where your money is going, and develop and implement strategies to build a more sustainable, profitable business. Ultimately, we want to help you get to a place of not just being profitable, but bringing home a steady 20% profit margin.
0-10%: You're just making a profit and that is okay.
There's room to grow! We recommend aiming for a 20% profit margin and our finance and accounting experts at Fully Accountable are here to help you understand where your money is going and make those small but crucial changes to bring you to a place of greater profitability.
10-20%: Great job! We recommend aiming for 20% and you are right about there.
Need some help figuring out how to take that over the finish line? Our finance and accounting experts at Fully Accountable are here to look for those opportunities that are easy to overlook that can help bring you to a new level of profitability.
20-30%: Awesome! We recommend aiming for 20% and you've hit that.
There are lots of opportunities you can take advantage of when you have a steady profit margin above 20%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
30%+: Amazing! We recommend aiming for 20% and you're exceeding that – way to go!
There are lots of opportunities you can take advantage of when you have a steady profit margin above 20%. Our finance and accounting experts at Fully Accountable are not only here to help you stay profitable, but to also leverage the opportunities that are available when you have a strong profit. Whether you are looking to make further investments, sell your business, or scale in a new way, our team is here to develop and implement strategies to do just that.
Connect with an expert to learn how we've helped thousands of services businesses like yours achieve financial success.
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