What with all the talk about “cash flow” and “cash flow management,” it’s worth your while to gain a better understanding of what these terms actually mean.
Positive cash flow, for example, does not mean the business is profitable.
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This article tries to draw attention to the role that accountants could play as business advisors within your business. Historically, accountants occupied the position of “bean-counters,” which essentially focused on what happened in the past, not on what the future of the business holds.
This has changed, and it’s important to understand the dynamics of how it works in today’s business context.
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When choosing for the right qualified CPA for your business, the goal is to find a business advisor who is qualified to help take you from point A to point B—the long haul, in other words. The plan is to find the right complimentary relationship.
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Before getting into a discussion of common bookkeeping mistakes, it is worthwhile to address the importance of sound bookkeeping in general.
The importance of sound bookkeeping is frequently lost and ignored by management. It is apparent that the main reason management tends to ignore the bookkeeping function is because it is focused on the “big picture.” What management fails to recognize is that there is no “big picture” to look at without bookkeeping first doing its thing in the details.
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One of the most significant, if not the most significant function within any secure business is that of risk management. Risk Management equates to having a set of policies and procedures in place that are designed to mitigate losses caused by a myriad of circumstances including natural disasters (floods, tornados, hurricanes, etc.).
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A green business is a business that cares about its profitability while at the same time is constantly attentive to the impact the business has on the environment.
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Small businesses looking to increase sales and profit, reduce dependence on the domestic market and stabilize seasonal fluctuations should consider exporting. Consider these facts:
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Entrepreneurial finance is the process of making financial decisions for new ventures (i.e. startups). New ventures are inherently different from established ventures, as are entrepreneurs inherently different from conventional business managers. The financial decisions faced by each are starkly different as well.
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Most professionals have only a vague understanding of what Artificial Intelligence (AI) is or means. Absent an understanding of these capabilities, it is near impossible to have a working knowledge of the opportunities for applying AI to the accounting field.
What Is Artificial Intelligence?
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So, you have an interest in owning and operating a franchise? Or maybe you know someone, such as a family member, who shares your interest? Hopefully, this information is getting to you before you’ve completed your acquisition because many of the following points should ideally be addressed and prepared for prior to making any commitments to purchasing a franchise. The following are some of the higher priority points of relevance.
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If you’re contemplating executing a business project and want to be as prepared as you can be then we highly recommend you dig your teeth into the following information.
As Technopedia defines it, a project plan is a formal document that is intended to serve as a roadmap from start to finish of a contemplated project. The plan is made up of elements such as resources used, milestones, and timing to name a few.
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According to McKinsey & Company, the rapid shift of economic activity from established markets in Europe and North America to developing ones in Africa, Asia, and Latin America has many CFOs asking treasurers to improve their performance. In an effort to help corporate treasurers improve their performance in core activities, 120 treasurers were surveyed and an additional 50 in-person interviews were conducted.
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The world of financial literature is replete with discussion concerning how to identify successful projects and how to increase the success of existing projects. What the world doesn’t seem to do enough of, however, is to make an effort to identify bad projects that can be a drain on the profitability provided by good projects. More attention needs to be given to the fact that overall profitability of an organization can be increased by eliminating any bad projects in the organization’s product mix.
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For companies experiencing temporary cash shortages, asset-based financing may be an alternative that makes sense as a viable way of meeting its cash shortfalls. With this method of financing, a cash-strapped business can use the assets that they have to overcome its cash flow shortages.
As noted by FinWeb, there are two primary means of asset-based financing, as follows:
1) asset-based loans
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The position of Chief Financial Officer (“CFO”) is typically the “top of the pyramid” in the career path for those seeking advancement within a finance career. The following information is provided to assist anyone seeking to pursue such a position.
1. What Does a CFO Do?
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Rollovers as Business Start-Ups (ROBS) are financing mechanisms in which current or prospective business owners use their 401(k), IRA or other retirement funds to pay for new business start-up costs, for business acquisition costs or to refinance an existing business.
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Although the official tax filing date has passed us by, the subject matter of this blog is still relevant because many taxpayers have filed extensions and have a number of months before the extended filing date is final.
Immunity from making mistakes on your tax returns is something that no one can ever really guarantee. Some mistakes are accidental while other kinds of mistakes are not so accidental or are intentional.
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Now that you’ve closed on your purchase of a business, what are you going to do? Sit back and watch? Closely managing the transition from the former business to your new business is the recommended task at hand.
However, managing the transition presents a number of challenges.
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On many occasions, I’ve seen entrepreneurs embark on operating a family-owned business and thinking that it’s going to be easy to be successful or that there won’t be any of the problems typically encountered in an non-family scenario.
In many cases, however, these assumptions rarely turn out to be the case.
Many of the issues arising in a family business scenario are unique, and it is wise to plan for these accordingly. For example, working with loved ones can give rise to conflicts otherwise not encountered in a non-family scenario.
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One of my favorite sayings is “the only constant is change.” This saying certainly holds true in the business realm where it seems that the mandate is also “growth and go.”
Experience seems to show that upon the purchase of a business the new owner needs to roll-up his or her sleeves and really get to work.
The following steps, as noted by Business Daily, help to summarize a recommended agenda for a new business owner to focus on:
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With so many possible deductions and credits available to the individual taxpayer it’s no surprise that the possibilities can get easily lost in the shuffle.
This article identifies some of the tax breaks that frequently get overlooked by the individual taxpayer. The points below will help reduce the confusion of what can and cannot be deducted in your 2016 tax returns.
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The core problem for every entrepreneur and small business starting out is the same.
They need cash.
That holds true whether it’s a brand new business who needs cash to realize a great idea or a company who just needs to gain a competitive advantage and achieve growth.
Part of it, of course, is acquiring hard assets—equipment, real estate, office space, warehouse space, technology—and soft assets, such as regular, reliable employees and, occasionally, consultants who help guide the direction of the business.
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“And they’re off!” If you’ve ever been to a horse race, the phrase should sound familiar. Those words apply now: the rush to file a complete and accurate tax return on time has begun.
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Since 2015, when the Fixing American’s Surface Transportation Act was passed by Congress, world travelers who owe the IRS money have found that it’s no fun to owe a tax debt. In fact, it can ground any and all international travel plans indefinitely.
As noted by Jim Buttonow of Accounting Today:
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Last month we featured an article that provided a general overview of the types of bankruptcy available to debtors who have hit hard financial times. We addressed the fact that despite the purpose of bankruptcy, that it is supposed to be a mechanism for giving the debtor a chance for a “fresh start,” the ramifications of declaring bankruptcy are far reaching and drastic, to say the least.
The article made the following points:
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Why would any article discuss how to sell a home in winter? Besides some surprising strategic rationale (which we’ll discuss in a moment), the reasons are simple:
- Your home is likely the most significant piece of your investment portfolio
- You will eventually purchase and sell your home several times
- You should be knowledgeable about selling your home at any time of year
But believe it or not, research shows that listing your home during the winter season might be the smart thing to do for both the seller and buyer.
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It’s no wonder that the word “bankruptcy” sends shivers down the backs of debtors who have hit hard financial times. Despite the system’s intent that bankruptcy works as a mechanism for giving the debtor a chance for a fresh start, the ramifications of declaring bankruptcy are far reaching and drastic, to say the least.
Debtors facing foreclosure or excessive debts are too often under the misconception that declaring bankruptcy is the perfect solution to these problems.
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So, you’ve decided you want to open a business? Have you given any thought to the type of business you want to open? Deciding what type of business you’re going to open is a key first step in the process of going into business. Everything you do will flow from the type of business you decide on opening.
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It’s frequently said that if you don’t plan for the future then you must be planning to fail. Hence, it’s fair to say that a business plan is widely regarded as a very important--essential, even--management tool.
A business plan is a written document that describes where you want your business to be in the future along with the resources you anticipate needing to achieve your goals for the business. These resources can take the form of financial funding (loans etc.), headcount, capital asset acquisitions, etc.
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If you happen to be in start-up mode you probably haven’t given much attention to the importance of keeping your personal and business finances separate from each other. This blog is certainly not limited just to start-ups, but also includes ill-informed businesses that are beyond the start-up phase of maturity.
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