Posts Tagged ‘financial problems’

Consider a Variety of Business Information

Do you consider a variety of business information when making decisions, or are you stuck in the habit of only looking at a few things you think are important? Read the rest of this entry »

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All Those Accounts Receivable are not Impressive

In a series of articles I’ve been focusing on how to manage cash and how managing assets, expenses, and liabilities impact it. Now I want to be a little harsh in one particular area.

Receivables are Every Where

Perhaps when you look at your financial statements and see accounts receivable that represent 70% or more of your current assets you are impressed. Should you be? Read the rest of this entry »

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Focus on Staying Current

You’ve probably heard that your stress level can by reduced by decluttering. Part of that decluttering involves getting current on activities. But after decluttering, then what?

Picture This

Most of us have the experience of having looked at a closest, garage, basement or desk that was cluttered. It can be Read the rest of this entry »

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Making the Best of Bad Financial Results

Is there are way for making the best of bad financial results? I think there is. In fact, sometimes bad results can be the catalyst for major improvement.

When Bad is Good

First let me say I’m not really suggesting that bad results are good. No, the good I’m referring to has to do with 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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Accounts Payable is Not Long-Term Debt

This will be a very short article. It is a follow up to Current or Long-Term Debt that discussed the appropriate use of various kinds of debt.

Accounts Payable

A comment made in a forum about accounts payable is what prompted this brief update on debt and how it is used. The commenter noted that a company was reclassifying some of its accounts payable to a note payable. When I heard this all kinds of bells and whistles went off. This is usually an indication of Read the rest of this entry »

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Unethical Financial Practices

Are you a business owner, manager, any employee whose business financial practices are unethical? You may hate that question or find it insulting, but here are some things to think about. In the posting Is That Really the Truth? I touched on why truth matters so much. Now let’s look a little more at that.

Some Financial Background

I was prompted to write this article by my conversations with other people who were dealing with clients wanting to use questionable practices. The details are not what matters here. What does matter is Read the rest of this entry »

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Importance of Liquidity

In my last three posting, Necessity of Working Capital, The Current Ratio Matters and Quick Ratio Analysis we looked at three ways to asses a company’s liquidity. While working capital, the current ratio, and the quick ratio are useful liquidity measures, they may need some refinement. Let’s dig a little deeper and try to understand more about the importance of liquidity and why just the basic calculation of any of these may not be as helpful as we may have first thought. Read the rest of this entry »

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Misleading Financial Information

The blog posting Two Dangerous Financial Illusions looked mainly at sales and profitability and how these can often be misleading. Let’s look at some more areas where misleading financial information may present.

Overvaluation of Receivables

Whenever a company undergoes an audit (and to a lesser degree a review), there are certain items on the financial statements that warrant extra scrutiny. A main one is accounts receivable.

One common way that accounts receivable may be over-valued is when Read the rest of this entry »

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5 Reasons to Keep Accounting Current

Accounting is one of those areas that can get put on the back burner. That can be a very serious mistake. This posting is highly relevant to start-ups, but applies more to some small businesses that have existed for a long time than you might imagine. Although there are certainly more than five reasons to keep accounting current, here are five that I believe are critical.

Legal Obligations

You will undoubtedly need correct financial information to have Read the rest of this entry »

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