When you purchased those office laptops or that sweet new delivery van, you paid attention to the sticker price and monthly payment. You probably didn’t … Read More

Typically, depreciation accounts is based on time. Your assets depreciate at a consistent rate each year regardless of how often they are used. Straight-line depreciation … Read More

The asset is a big-ticket item. You purchase it because it do the most work during Year One. It wears out components; it guzzles gas; … Read More

If you’re a business owner, you already understand that purchasing a delivery van or piece of heavy equipment are just the beginning of the financial … Read More

Inventory is an asset on your books, and most business owners see it that way. But inventory is also a ticking clock. Each pallet waiting … Read More

It’s possible to make money, but nevertheless go broke. How? Because while “profit” is an accounting concept, “cash” is physical reality. There’s an operational stress … Read More

You can have a current ratio that looks great on paper but still run out of money next Tuesday. That’s the trap. Most people look … Read More

Balance Sheet: You may glance at someone’s balance sheet and notice that their current assets are twice as large than their liabilities (current ratio = … Read More

Running out of money to pay employees doesn’t mean you aren’t seeing something on your balance sheet. Revenue isn’t cash, profit isn’t survival. Working capital … Read More

Days Sales Outstanding is how long it takes you to get paid by your customers. Collecting cash is important, you might close some deals and … Read More