9 Powerful Reports to Master your Business Finances

There are so many things you could look at to monitor your business finances. Where do you start? The reports below will help you improve the performance, cash flow, and profitability of your company. I’ve grouped these business finance reports into three groups: Backward-looking Forward-looking The one critical report you should be monitoring. For each […]

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Other Peoples’ Money Magnifies Returns but can Cause a Cash Crisis

Business and investment gurus tout how you can make big profits with little money of your own. They show how using other peoples’ money can make you rich. It’s true that using other peoples’ money, known by the acronym OPM, can increase your returns. But OPM can also be like the drug opium. Its highs […]

Measure More Value with the Triple Bottom Line

The triple bottom line broadens your view of your company’s impact. Many businesses focus on one thing – profitability (a.k.a. “the bottom line”). Recently, both business owners and customers are realizing that a single bottom line misses a lot of what they value. Some are now looking at a “triple bottom line.” While profit is […]

The Advantages and Disadvantages of Sole Proprietorship

Knowing the advantages and disadvantages of sole proprietorship helps you decide if it’s right for your company. When you start a business, the type of entity you select to form your business affects compensation, taxation, liability, accountability, and dissolution or bankruptcy. This article will outline sole proprietorship advantages and disadvantages. It comes from the office […]

The Benefits of Filing Chapter 11 Bankruptcy as a Small Business Debtor

You may have heard that the Chapter 11 process is somewhat streamlined for small businesses, and this is true. A “small business debtor” is a person or entity who: (1) is engaged in business or other commercial activities; and (2) owes no more than $2,725,625 in total claims as of April 1, 2019, excluding obligations […]

Net Working Capital: Formulas, Examples, and How to Improve it

The working capital formula and working capital ratio formulas are popular and easy ways to estimate your future cash flows. Lenders use it to judge your financial health. Do you know how much net working capital you have? Is your net working capital ratio at a healthy level? How can you improve your working capital […]

How to Use Marginal Profitability Analysis for Better Decisions

Don’t Use Historical Profitability Analysis for Forward-Looking Decisions You’ve heard for years that you needed to perform product profitability analysis to know which of your products made or lost money. Maybe you finally calculated the profitability of each of your products. Congrats! That’s a good start. Just don’t use them to decide what you should […]

How to Conquer Cash Flow Chaos with this Excel Cash Flow Projection Template

A cash flow projection is the most important financial report for your business yet so many businesses miss out on its benefits. How important is cash flow? Richard Branson said, “Never take your eyes off the cash flow because it’s the lifeblood of business.” A study by QuickBooks revealed shocking statistics about cash flow issues […]

12 Cash Flow Management Tips (And One Essential Tool)

I think you’ll agree that fluctuating cash flows are a massive source of stress for a small business owner.  One day you’re riding high on piles of cash then suddenly your holding on with white knuckles as your cash flow plunges.  It’s time to get off this wild ride by finding ways to increase your […]