I find business owners have a hard time keeping the gross profit margins on their product or service in mind when establishing pricing. To be able to maintain your gross profit margin, you need to know what your costs are. Continue reading
Tag Archives: accounting
Show Me the Money
When you talk about your business with someone that might have an interest in loaning you money, or joining you as a partner, or buying the business, they will want to see the Cash Flow Statement. Continue reading
A Short Course in Numbers – Part 2
In Part 1 I mentioned that John McCarthy, computer and cognitive scientist who coined the term “artificial intelligence” stated…”he who refuses to do arithmetic is doomed to talk nonsense.”
Recently I wrote about KPIs, Key Performance Indicators. In Part 1 of this series, I presented a few ratios that might be your KPIs, or a part of your overall watchfulness of the numbers in your business. In this post I’m going to review some calculations to determine what typically happens in your business. There are four common methods of calculating a typical value: mean, median, mode and midrange. Don’t run – stick with me – it will be painless, I promise, and if you need more help, call for an appointment to work on the numbers for your business. Continue reading
5 Reasons You Should Hire Someone to do the Accounting
Lots of small business owners start out thinking they will do everything they possibly can in their business to keep costs low, including doing their own accounting. Some have learned the hard way that small errors can add up to a big mess. Continue reading