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 […]
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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 […]
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 […]