Is it Right? When I look at the account balance on a set of financial statements, I always ask myself this “rocket science” question – “is it right?” And the answer can take some time to analyze. Let’s take a simple example – accounts receivable. Assume your Balance Sheet says you have accounts receivable –…
Is it Safe? The first question people ask me when I suggest only an online bill payment service is this – is it safe? The question I ask – do you think it is safe to pay by cheque? And, if yes, why? Let’s look at the facts. The Association for Financial Professionals (AFP), not…
Sticky Costs Happy 2019! Once a business reaches a certain size it’s spending habits can spin out of control. Costs tend to be sticky. Let me illustrate what I mean by sticky with a simple example… You want to get in shape, so you join a gym. The monthly fees are billed on your credit…
Everyone knows how digital distractions dominate and divert our attention. Beep-beep, ding-ding, bzzz-bzzz. It’s like Vegas 24/7. (By the way, ironically, the titans of most social media companies and cell phone manufacturers forbid, yes, forbid cell phone to their kids. Do you think they know something we don’t?). Arguably the biggest distraction for people in…
One of the most stressful situations to be in is when you are the owner of a business (or the employee of a business) is when there is more cash going out than coming in. On the surface there may even be healthy net profit, and consistently good growth. However, cash may be tied up…
Most business owners never look at their cash-flow statement. Even for me, as a professional accountant, they can be rather cumbersome to create and boring to look at. Finally, we have a cash-flow report format that you can really see. A cash-flow report that puts the color back in and takes the word flow placing…
Every business owner knows what it is like when you first start up in business… Any sale is a good sale. It is also known as the breath-test. Is the person breathing? Yes!! Great!! A potential customer!! Credit checks can come later. Personality tests, well so what if they are a toxic personality – we…
I love Amazon as a company. I know, I know, I know – they are huge, and there may be many of you going “but, but, but” reading that sentence, as you form objections in your mind. Or perhaps you agree. They really wow me with their service. How many huge companies can you call…
A current trend in business right now is shifting from employees to self-employed freelancers, or contractors. There are tremendous benefits, some disadvantages, and risks too. You must structure things correctly, and the main thing is that the freelancer must share in the benefits of gain as well as the risk of loss. The main benefits…
In two main areas of your business you don’t have to do what everyone else does. And these two areas are critically important to your success. The key is – once you set your Rules of Engagement, then you must ensure that you deliver on your promises. These two critically important areas are – (1)…