Posts Tagged ‘sales’

Justify Spending

Does your company have a way to justify spending? If so, have you realized that there may not be one all-encompassing way? If not, the why spend?

A Little Background

One of the first times I encountered this after college involved justifying expenditures for capital equipment. Actually I don’t even remember what method was used. It could have been return on investment (ROI), time to recover the cost through expense reduction, discounted cash flow or some other method. The point is, though, they did at least have some method in place to justify capital expenditures.

Years later a client would not even entertain the idea of justifying equipment purchases. The only method this particular client used was somebody said they needed it or Read the rest of this entry »

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Generalist or Specialist?

There is an ongoing debate as to whether a business should hire those who are generalist or those who are specialist. Here are a few thoughts on that.

Generalist

A generalist is a person with a diverse base of knowledge. They are sometimes viewed as not being particularly strong in any one area, although they would obviously be stronger in some areas than others. While I am sure there are some who fit that mold, my belief is that the role they fill often distorts our perception of Read the rest of this entry »

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QuickBooks Non-Inventory Items

If you are a user of QuickBooks you are most likely familiar with the importance of items to use the software correctly. You probably also know that there are several types of items, such as Inventory Item, Fixed Asset Item, Sales Tax Item, Sales Tax Group Item, Sub-total item and others. Let’s take a look at one in particular; QuickBooks Non-Inventory Items.

How are Non-Inventory Items Used?

QuickBooks non-inventory items (non-inventory parts) are used to Read the rest of this entry »

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Unnecessary Accounting Complexity

Some of the things that frustrate business owners are receiving financial information that is too late, overly complicated, or both. In fact, unnecessary accounting complexity is often the cause of being too late.

Timely Financial Data Matters

If financial information is not provided in a timely manner, some of the issues that can occur are: Read the rest of this entry »

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Customer Confidence

Consumer Confidence

The consumer confidence index is a macro measure, but for individual companies there is a more important confidence to track. Most of you who read this are probably somewhat familiar with the consumer confidence index that is regularly announced. In essence it attempts to state consumers’ confidence in the economy in light of their Read the rest of this entry »

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Internet Sales Taxes

By a vote of 69-27 the U.S. Senate has passed a bill called the Marketplace Fairness Act which allows states to collect sales taxes from online sellers whose out of state sales are $1 million of more. Whether the House of Representatives also will pass it is yet to be determined. There are pros and cons about the bill.

Some Pros

It is indeed true that states have not been able to collect internet sales taxes on Read the rest of this entry »

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Diversify to Lower Risk

Your business may be performing well, but there may be a hidden risk you haven’t considered.

Changing Times

In 1964 Bob Dylan recorded a song called “The Times They Are A-Changin”, and yes, changing really was misspelled in the title. Forget about the words to the song as it is the title that matters here. Nothing stands still. Over time everything changes. That is a vital fact to grasp if your business is to survive.

But We Have a Great Product

While your product may be great today, will it Read the rest of this entry »

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Two Dangerous Financial Illusions

Sometimes when a company gets into financial trouble management is being deluded by things they thought were indicating financial health.

The Sales Illusion

It is not uncommon for a company’s management to see growing sales and think this is a clear indicator that everything is going fine. Increasing sales can be an indicator of financial health, but not when taken alone. If you read the posting Cash Flow – The Bottom Line you would have read about Read the rest of this entry »

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Simplified Management Accounting

If you are not specifically an accountant but have responsibility for managing profit, what should you know about management accounting? Before we get into this, let’s first look at a definition.

Management Accounting

First let’s get a working definition of management accounting.  In a nutshell it is the providing to and use of accounting information by management. It is important to realize this information may be used by both those with an accounting background and those without that background. Therein lays the problem that should be Read the rest of this entry »

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Cross Sales and Up Sales

Nearly every company is trying to figure out ways to increase sales and generate sales that deliver better margins. But are they turning over every stone to do so?

The Typical Approach

One of the first things most companies do is put pressure on sales people to generate more sales. Along with that they often become more lenient in sales terms, thus creating more accounts receivables and in the process likely increasing days to collect. Be careful when you decide to relax your credit terms. This can be a recipe for disaster and reduced cash flow. See 3 Reasons Past Due Receivables May be Worthless and 3 Low Cost Sources of Cash – Part 2 for more on this. But suppose it is not practical to grant more lenient sales terms? What are some other ways to generate increased sales? Read the rest of this entry »

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