Posts Tagged ‘expenses’

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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Testing Your Business Idea

For years I’ve loved working with start-ups and early stage businesses. There are numerous reasons, including the uncertainty and the need to be able make quick changes as the business begins to unfold. You might wonder why I would like uncertainty. Well, I like it because it keeps challenging me to grow and learn. If you are starting a business or even trying to grow a relatively new one, you will find it more enjoyable and improve your likelihood of success if you learn to like or even love uncertainty and change and the challenges both present. Whether a start-up or simply a relatively new business, you will need ways for testing your business idea.

The Disadvantage That Once Existed

It was not that long ago that you had to invest a lot of time and money simply to see if Read the rest of this entry »

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The Farce of Allocation

If you have a company with multiple product lines or divisions then you may have encountered the age-old difficulty involved in allocation of overhead. This is an area that often creates heated debate.

An Example

Imagine a company with two clear product lines, A and B. In this same company there are administrative roles that are handled by the corporate office, which has no direct connection to Read the rest of this entry »

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Out of Control Expenses

Expenses are one of those things that sneak up on us. For a few months everything may seem reasonable, but suddenly everything seems to change for the worse and you have out of control expenses. You’ve probably experienced this on a personal level. You may find yourself asking, Read the rest of this entry »

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Income Statement Snapshot

When you read your Income Statement (Profit and Loss Statement) what is your process? Do you just look to see if you made a profit? Try digging a little deeper.

The Big Picture

In the post Balance Sheet | A Different Look we took a look at how we first examine a balance sheet from an overall perspective, much like we look at a family photo. As this is done certain items will Read the rest of this entry »

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