Financial Statements

Time to Think

 

Before you begin a major undertaking in your business do you take time to think in depth? It is critical if you are to avoid unexpected results.

It Begins with Thoughts

Before we do anything we first think. Even those routine things we do daily involve some thought beforehand. But, in this posting we are concerned with actions that are not routine, at least not yet. Read the rest of this entry »

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Business Depends on Truth

We live in an age where information spreads quickly. Unfortunately, much of it is not true. Yet, business depends on truth. To what am I referring?

This Lie Won’t Really Hurt Anyone

It is common in the business world, as in private life, for people to lie to accomplish some purpose. It could be as simple as making claims about a product being offered that at a minimum stretch credibility and at the worst are complete fabrications. Yet, a business may attempt to justify this by 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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Analyzing Expenses

When you examine your company’s income statement do you find yourself wondering why some expenses seem to have little to do with sales? There are three basic breakdowns of expenses that will help you when analyzing expenses. Read the rest of this entry »

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Monthly Financial Closing Plan

Does your company always seem to be late getting monthly financial statements? The solution may be simpler than you think.

A Case in Point

Several years ago I took on a new client. When I did so the individual who had been doing what I would be doing spent just a few days familiarizing me with his routines. As he was doing so I kept thinking something was missing. Actually there turned out to be several things missing.

For Starters

After I fully took over what was missing began to become apparent. First, there was Read the rest of this entry »

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Make Profit Count

Ever wondered why a company that seemed to be doing so well suddenly failed? Often times the reason is that management took their eyes of the ball, with the ball being defined as cash. I touched on this earlier in Cash Flow – The Bottom Line. Basically the issue comes down to realizing that in order to make profit count it is essential that profit is converted to cash.

Cash is Critical

Without adequate cash a company will be hard-pressed to pay bills. I’ve had clients and been an employee of companies that were very profitable on paper. But, that’s on paper only. If you looked only at Read the rest of this entry »

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Company Crooks

This posting was prompted by an article I read about what to do when a company owner was committing fraudulent activities to evade income taxes. Whether the fraud is committed by an owner or someone else, let’s cut to the chase and call them what they are: company crooks. While I will not rehash the tax issue, I do want to touch on the issue of fraud from another vantage point; that of the employee or contractor/consultant who has knowledge of a fraudulent activity.

It Could Be Anybody

If you are in a position with a company where you have any kind of fiduciary responsibility this is for you. That not only means CFOs and Controllers, but Read the rest of this entry »

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Too Many QuickBooks Items

QuickBooks items are one of its most powerful features, if used correctly and wisely. If you use QuickBooks, perhaps you have encountered one of the following issues with items:

  1. You have exhausted or are close to exhausting the list limits
  2. You have so many inventory or non-inventory item numbers that you are overwhelmed

Here are some thoughts on using items in QuickBooks that may save you some headaches.

Know the Limits of Items

Each version of QuickBooks has limits for list. For example, in QuickBooks Pro 2014 the limit for item lists is 14,500. That means that the total of Read the rest of this entry »

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A Financial Reckoning

Are your business finances in good shape or are you headed for a financial reckoning? As I observe the financial picture of our economy and in particular our government, I cannot help but wonder how long this way of operating can continue. Read the rest of this entry »

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Problems of Delaying QuickBooks Start

If you are planning to use QuickBooks, delaying will only make it more difficult. Here are some reasons why.

Setup While Operating

If you decide not to implement QuickBooks at the beginning of a fiscal year, you will likely find that there is a real conflict later between staying current with your existing accounting system and doing what is necessary to start using QuickBooks. Although you can install QuickBooks with a Read the rest of this entry »

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