Posts Tagged ‘fixed assets’

The Latest is Not Always the Greatest

We live in a time of constant change. As a result of this and effective marketing, some companies get people to buy things they don’t really need. What do I mean by that? Read the rest of this entry »

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Lean Assets

You may have never heard the term lean assets. It’s really refers to both a mindset and assets. Here is what I mean by that.

Laying the Groundwork

This is really part of a series of articles intended to address having adequate cash to operate your business. Read the rest of this entry »

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Where is the Cash?

Occasionally when I’ve first started with a new client I find myself wondering “where is the cash?” This is especially true when they are fairly profitable.

It’s There, But Where?

Unless there is theft, the cash is there somewhere. Unfortunately I’ve also seen situations Read the rest of this entry »

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Productivity of Fixed Assets

I remember a client a few years ago who tended to make what he considered bargain purchases of equipment. Often the purchases were large enough that they needed to be capitalized. Unfortunately much of what he bought turned out to be useless and ended up sitting around the building like an over-grown paperweight. He may have still thought these purchases were a good idea, but they certainly weren’t producing a decent return. In fact, they were producing no return whatsoever and were nothing more than a waste of financial resources. So, what should you expect out of your fixed assets? Read the rest of this entry »

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Excessive Debt

If you have not already heard, the city of Detroit, Michigan is planning to default on a large portion of its debt and probably reduce pension payouts. So what is the lesson for your business?

Borrow Carefully

There are times when a business really does need to borrow to continue growing. However, there are also times when a business may borrow for the wrong reasons. In the case of Detroit and many other municipalities, commitments were likely made that far exceeded reasonable expectations of tax collections. One reason this could have happened was to avoid the Read the rest of this entry »

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When an Asset is Not an Asset

When is an asset not an asset? Let’s start out with some basics before we get into the meat of this article.

Asset Defined

According to Merriamwebster.com one of the definitions of an asset is an item of value owned or item(s) on a balance sheet showing the book value of property owned. For accounting purposes this is a good working definition. It would include such things as cash, receivables, inventory, land and building, equipment, and pre-paid expenses. There are other things that can be classified as an asset, but this list does not need to be all inclusive for the purpose of this blog.

How Are Assets Used?

Assets are used to Read the rest of this entry »

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