If you can’t answer this question with hard numbers, then you don’t really know. The most successful companies have systems in place to make sure that profit is prioritized, expenses are controlled and stakeholders are regularly updated about about progress.
Here are seven ways to see how much you’re really...
Instead of showing everyone the financials, focus on the economics of the business to really engage people
Want to improve your business results and the lives of the employees who drive those results? Start with the financials, we used to say…
My in-laws were recently in town, and my father-in-law was lamenting the lack of progress of a farm business they’ve purchased in retirement. “It’s just non-stop spending. You get cash in and then you spend it,” he said.
You’ve probably felt the same way. Business is a never-ending cycle of...
Return on investment (ROI) is a financial ratio that calculates the level of income generated by a specific investment. Learn more about ROI, how to calculate it in your business, and why it’s so important to understand the results of your calculation…
New business owners or those new to accounting tend to equate expenses with cash output, with the assumption that any expense created by your business will also include a reduction of cash. While that is true if you’re using cash basis accounting, if you’re using accrual accounting, a recorded expense does not always include a reduction of cash…
Not keeping track of your balance sheet is one of the quickest ways to doom your business. You need to know whether you can make debt payments, if you have too much inventory, and even how much your customers owe you.
The first step to reading a balance sheet is understanding the difference between assets and liabilities…
As a business owner, your focus is likely centered on making money. But as important as it is to produce revenue, there are expenses involved in running your business as well. A cost center is an employee or a department within your company that performs those expense-bearing, necessary tasks.