Our two most recent posts, we’ve discussed that there are 4 critical items to understand your financials. 3 come from the balance sheet (asset quality, liquidity and leverage) and the 4th comes from the income statement (profitability).
In our last post, we discussed that of the 4 critical items, (Profitability, Asset Quality, Liquidity and Leverage) 3 of them are from the Balance Sheet. The 4th, Profitability is on the Profit and Loss Statement, sometimes called the P&L or the Income Statement.
We believe it’s critical for every business owner to know how to manage money once it’s in the business rather than just making sales. And it can be even more impactful if all employees are empowered to know how the decisions they make affect the bottom line and top line of the business. In order…
If you’re like me, you’re reflecting on 2015 and setting the table for 2016. What are you going to start doing, stop doing and keep doing? One of the ways of determining this is to look at the key metrics of your business to determine if you’re on the right track for success or what…
Two things have become increasingly apparent to me. If you’re a big company, you have good access to capital and can find the funding needed to finance your business. Small companies don’t have that access to capital and finding funding is difficult. Here’s why:
Are you under-banked? If so, you’re not alone. A recent article I read indicated that among CFO’s, being under-banked has landed on the growing list of challenges most CFO’s face. Here’s why:
Success should not come as a surprise. It’s something you’ve planned for. You have the right people in place with good processes and execution.
The Great Recession is clearly a thing of the past. The economy appears to be expanding. Businesses are seeing sales, growth, and profits. Entrepreneurs are experimenting with new products and markets, starting new divisions and making investments in people.
When you first start your business and begin recording business transactions, you must decide whether to use cash basis or accrual basis accounting. The big difference is in how you record your cash transactions. Many people use cash basis accounting for taxes and accrual basis for managing the business. Here are 5 things you must…
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