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Management Reporting & Budgeting

Unit Economics and Profitability

FinAura works out the economics of a single unit of your business: an order, a customer, a subscription, a project or a store. Revenue, direct costs, acquisition cost and servicing cost are traced from the books, so you can see what each unit really earns and how many you need to cover fixed costs.

  • Chartered Accountant-led
  • Bangalore and across India
  • Reply within one business day

What is covered

What Unit Economics and Profitability Covers

What one sale, customer or store really earns.

Revenue per unit

Net of discounts and returns.

Direct cost

Materials, delivery, fees.

Acquisition cost

Marketing and sales per customer.

Lifetime value

Repeat behaviour, where data allows.

Contribution

What each unit leaves for fixed costs.

Break-even

Units needed to cover overheads.

How the month runs

How It Works

Define, trace, calculate, act.

  1. Step 1

    Define

    • The unit
    • The period
    • The data
  2. Step 2

    Trace

    • Revenue
    • Direct costs
    • Acquisition spend
  3. Step 3

    Calculate

    • Contribution
    • Payback
    • Break-even
  4. Step 4

    Act

    • Levers identified
    • Tracked monthly
    • In the MIS

Your part

What We Need From You

  1. 01Sales data by order or customer
  2. 02Cost data
  3. 03Marketing spend by channel
  4. 04Customer retention data, if any

Our part

What You Get

  • Contribution per unit you can trust
  • Acquisition cost and payback
  • Break-even volume
  • Levers ranked by impact

A common question

Why do unit economics matter more than revenue growth?

If each unit loses money after direct and acquisition costs, growth only makes the loss bigger. If each unit earns well, the question becomes how fast you can add more.

Investors look at unit economics first for the same reason, and so should management.

See pricing and margin decisions
ContributionWhat it leaves
CostsDirect and acquisition
UnitOrder, customer, store

Who it is for

Who It Is For

01

D2C and e-commerce brands

Per-order economics.

02

SaaS and subscription businesses

Per-customer economics.

03

Multi-store retail

Per-store economics.

04

Startups before fundraising

The numbers investors check.

The rules, in plain English

What the Law Asks of Your Books

Companies Act, 2013

Section 128

Every company keeps books of account that give a true and fair view of its affairs, at its registered office or another place the Board decides, and preserves them for at least the eight financial years before the current one.

Official source: mca.gov.in

Companies (Accounts) Rules, 2014

Rule 3

Books kept electronically must stay accessible in India at all times, with a daily back-up on servers physically in India. For financial years starting on or after 1 April 2023, the accounting software must keep an audit trail of every change that cannot be switched off.

Official source: mca.gov.in

CGST Act, 2017

Sections 35 and 36

Every GST-registered business keeps its accounts and records at its principal place of business and retains them for 72 months from the due date of the annual return for that year, or longer while an appeal or proceeding is open.

Official source: cbic-gst.gov.in

Income-tax law

Books and tax audit

Businesses and professions above the prescribed limits must keep books of account, and a tax audit follows above further limits. The limits change from time to time, so we confirm which apply to you before the year starts.

Official source: incometax.gov.in

This is general information, not advice for your situation; we confirm what applies to you before any work starts.

Questions we get asked

Unit Economics and Profitability: Questions, Answered

What are unit economics?

The revenue and costs of one unit of your business, such as an order or a customer, showing what each unit contributes to fixed costs and profit.

What is customer acquisition cost?

Marketing and sales spend in a period divided by the new customers it brought in.

Can unit economics be calculated without perfect data?

Yes, with reasonable allocations that are documented, then improved as data collection gets better.

How is this different from product profitability?

Product profitability compares products; unit economics looks at the economics of each sale or customer, including acquisition.

Talk to Us About Unit Economics and Profitability

Tell us what your 'unit' is and what data you have. We reply within one business day with a scope and a fixed fee.