For over a year I’ve seen an increasing trend in my business for very large companies to delay their invoice payments much longer than in the past. While my terms have always been net 15 or net 30 days for … Continue reading
Category Archives: Financial Management
Without a history of sales, a new company has little data with which to forecast potential income. It’s challenging, therefore, to know if revenue projections are realistic. To help resolve this issue, I’ve developed a proprietary Revenue Goal Feasibility Tool. It’s specifically designed for businesses which have one or two owners and which receive their income primarily from services which at least one of the owners delivers. Businesses which market both products and services can also use the tool for establishing realistic revenue goals for the service side of the business.
Continue readingThis video underscores the importance of robust management systems for a small businesses and prioritizes the order in which to develop them.
Continue readingThe IRS gives small startups considerable latitude in their choice of accounting methods. Part 1 of this tutorial lays out the IRS guidelines governing which method your startup is free to use. It then contrasts the way income and expenses are reported in the two primary methods, cash accounting and accrual accounting.
Continue readingFor encore entrepreneurs starting a small business, cash accounting is simpler. But accrual accounting may serve your small business startup better. Here are some tradeoffs in choosing one over the other.
Continue readingThe third part of a three-part series on determining whether an accrual accounting system or a cash accounting system is best for your business. This installment looks at the trade-offs in choosing one of these systems over the other and shows how inexpensive accounting software allows you to draw on the unique advantage of both systems to monitor the health of your business.
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