Bookkeeping and accounting are vital business functions. However, they are overhead costs that provide absolutely no revenue. Therefore, smart entrepreneurs will do everything they can to keep this cost down. This must be done while maintaining the rigor of having timely and accurate financial information. This may sound obvious and may even sound easy. But […]
CFO
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 […]
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 […]
Getting by on Less Labor
I recently heard a report on the U.S. economy which stated that although the Gross Domestic Product (GDP) made some gains, there was little increase in the total number of non-governmental jobs. The reason given was that due to the recession, many employers have learned how to get more production form current staffing without adding […]
Controlling Labor Costs
For most businesses, labor is the biggest cost in the income statement. Fortunately, it is also one of the most controllable costs. But unfortunately, it’s a cost that most businesses have a hard time controlling. What makes labor so hard to control? There can be many factors, but several are common to most businesses: 1) […]