Income Statement

80/20 Expense Analysis

The term 80/20 expense analysis is not one you hear every day, but it is a concept that can be highly useful to managing and improving a business. Read the rest of this entry »

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Financial Literacy for Business Owners

If you are a business owner you may already be financially literate, but just how strong is that literacy? Even if you are there are likely some things your CFO, Controller, or in-house accountant can do to improve your understanding of your financial situation. On the other hand if you aren’t financially literate then these same people should be helping you to become so. Read the rest of this entry »

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Every Business Needs Accounting Done Right

Whether you’re a sole proprietor or a multi-employee small company, every business needs accounting done right. In the article Does a Part-time CFO Makes Sense? I touched on this issue, but let’s look a little deeper. Read the rest of this entry »

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Actively Manage Expenses to Increase Cash

Increasing cash involves paying attention to numerous things and acting in a timely manner. Let’s briefly look at how expenses impact this. This is the last of a series of posts on this topic, following ones on converting Read the rest of this entry »

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Return on Equity

I’ve wondered how many companies calculate their return on equity. It’s a revealing statistic of just how well the owners’ investment is performing. Read the rest of this entry »

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Sales and Earnings Acceleration

Most companies would be thrilled to see their sales accelerating. However, it needs to be accompanied by acceleration of earnings. The reality is that for growth to be healthy sales and earnings acceleration go hand-in-hand. Read the rest of this entry »

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Sales and Accounts Receivable

Every company focuses on growing sales. That’s good, but how many also track the growth of accounts receivable? Often the growth of one does not mirror the growth of the other. Read the rest of this entry »

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Unnecessary Spending

If we look closely we can see personal spending that was unnecessary. In business it can be more difficult to identify unnecessary spending. Ever wonder why? Read the rest of this entry »

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Financial Measurements that Matter

In business we typically measure a lot of things, but when it comes to financial information are we making and utilizing financial measurements that matter?

What Does That Mean?

To understand what I’m referring, let’s look back at the posting Some Key Financial Indicators where we briefly considered Read the rest of this entry »

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Discretionary Spending

When discussing discretionary spending it may be a little more complicated that it first appears. In the posting Analyzing Expenses we discussed three categories of expenses – fixed expenses, variable expenses, and semi-variable expenses. This posting involves semi-variable expenses, but with a bit of a nuanced approach. Read the rest of this entry »

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