In my last blog, I described the best form of company management, which that of “benevolent dictatorship.” I will now discuss a case study of an alternative form of management, and how it went awry. It may surprise you to know that there are enterprises that offer consulting in the implementation of alternative forms of management. […]
business
The Quick Ratio
The Quick Ratio is a variation of the Current Ratio, and is also an indicator of a business’s ability to meet its financial obligations. To learn about the Current Ratio, visit our video library at www. CFOoutsource.com. As discussed in the Current Ratio video, the Current Ratio is a number that is derived by dividing […]
The Current Ratio
The Current Ratio is a very important measure because it’s an indicator of a company’s ability to meet its financial obligations. What exactly is the Current Ratio? It’s a number that is derived by dividing current assets by current liabilities. A current asset is any asset on the balance sheet that’s expected to be realized, […]
Revenue Leaks and Fraud
It is estimated that 3% – 10% of our gross domestic product (GDP) is lost through revenue leaks and fraud. When you consider that many businesses make a net profit of less than 10%, losses form revenue leaks and fraud can make or break a company. How can you protect your company from fraud? The […]
Business Plans
Do you have a business plan? If so, how detailed is it? Does it include forecasts of income and balance sheets? And most importantly, does it include forecasts of cash flow? Does your business plan model allow you to modify important drivers, such as variations in monthly sales levels, variations by product, gross profit percentage […]
Cash Theft: Protecting your Business
There are two general types of theft of cash from a business: skimming and cash larceny. Skimming is where the cash never makes it into the accounting system, such as when an employee fails to enter a sale into the cash register. Skimming is the hardest type of cash theft to detect, but there are […]