In this section, you can learn the basics of business.

March 27, 2019
Financial Statements Business Owners Should Examine

9 Financial Statements Business Owners Should Examine Regularly

I don’t know about you, but I like to look at my company’s financial reports. To me, financial statements are vital for the S.W.O.T. Analysis you and your team members perform during your strategic planning sessions. If read and understood, they can reveal many of your company’s Strengths, Weaknesses, Opportunities, and Threats. However, I often run across business owners who do not know what types of financial statements to pull or how to read them once printed. Therefore, I’ve put together a list of nine financial statements business owners should examine during their strategic planning sessions.
March 25, 2019
Which Budget Strategy is Best for Business Owners

Zero-Based or Incremental… Which Budget Strategy is Best for You?

The word “budget” often strikes fear in the hearts of business owners. Yet, a budget is simply a tool that allows business owners to make prudent and wise decisions. That’s all it is. Nothing more and nothing less. So today, I want to talk about two different budget strategies you can use to anticipate your yearly income and expenses: the zero-based or the incremental budget strategy.
March 22, 2019
Profit and Loss - Reading Your Company's P&L Statement

Profit and Loss: Reading Your Company’s P&L Statement

Often, business owners typically look at their Profit and Loss Statement at the end of the year. And while they may glance over the report, entrepreneurs know that P&L Statements are important to the “financial guys.” However, most business owners don’t know how to read the reports. If you are one of those business owners, then you are crippling your financial department. Without your P&L’s story, you cannot create a transformative business budget nor can you build a pro forma. So today, let me show you how to read a P&L Statement.
March 20, 2019
Ways to Streamline Your Accounts Payable Process

How to Streamline Your Accounts Payable Process

I realize that as a small business owner you may not have the funds or the capacity to hire a CFO. Most likely, you’re the CFO. If that’s the case, then you must make a concerted effort to oversee all things financial, especially cash flow in and out of your company. However, unless you have bookkeeping experience or a degree in business, finance, or accounting, directing your financial department can be daunting. Therefore, if at all possible, I recommend hiring a CFO or placing someone within your financial division in charge of Accounts Payable (AP) – the money you owe vendors for products and services. You need someone who knows which Accounts Payable processes are necessary and someone who can implement those processes.
March 18, 2019
Improving Accounts Receivable Collections

19 Tips for Improving Accounts Receivable Collections

In my last article, I talked about how much cash you should keep in your personal and business checking and savings accounts. Now, I want to talk to you about how to get paid. More specifically, you need to get paid in a timely manner in order to build up your cash reserves. The CFO or department head in charge of your treasury oversees your cash flow, which includes your accounts receivable. This AR division of your company is directly responsible for collecting customer payments. Thus, it’s directly responsible for the health and well-being of the cash flow into your business. To keep that cash flow coming in, I have 19 tips for improving accounts receivable collections.
March 15, 2019

How Much Cash Should You Stash in Your Business and Personal Accounts?

In my most recent Value Growth article, I mentioned that a CFO, or the person who leads your finance department, should oversee four divisions of your business – treasury, tax, accounting, and finance. Subsequently, those in the treasury division of your business handle cash flow, investments, accounts receivable (income), and accounts payable (expenses). Since cash flow is the bread and butter of your business, I want to discuss that. Specifically, I want to talk about how much cash you should stash in your business and personal accounts.