Unlock hidden cash from your balance sheet

Need cash in a hurry? Here’s how business owners can look to their financial statements to improve cash flow. Receivables Many businesses turn first to their receivables when trying to drum up extra cash. For example, you could take a carrot-and-stick approach to your accounts receivable — offering early bird discounts to new [...]

By | 2018-01-31T11:32:23+00:00 January 31st, 2018|Accounting, Auditing|Comments Off on Unlock hidden cash from your balance sheet

How financial statements can be used to value private businesses

Owners of private businesses often wonder: How much is my business interest worth? Financial statements are a logical starting point for answering this question. Here’s an overview of how financial statements can serve as the basis for value under the cost, income and market approaches. Cost approach Because the balance sheet identifies a [...]

By | 2018-01-17T16:54:57+00:00 January 17th, 2018|Accounting, Auditing|Comments Off on How financial statements can be used to value private businesses

Make budgeting part of your New Year’s resolution

It’s important to resist the temptation to rely on gut instinct or take shortcuts when budgeting for 2018. Creating a solid budget that’s based on the three components of your company’s financial statements will help you manage profits, cash flow and debt. 1. Income statement Start the budgeting process with your income statement: [...]

By | 2017-12-27T11:10:56+00:00 December 27th, 2017|Accounting|Comments Off on Make budgeting part of your New Year’s resolution

Cutoffs: Don’t count your chickens before they hatch

Under U.S. Generally Accepted Accounting Principles (GAAP), there are strict rules on when to recognize revenues and expenses. Here’s important information about end of period accounting “cutoffs” as companies start to adopt the new revenue recognition standard. Cutoff games How closely does your company follow the cutoff rules? The end of the period [...]

By | 2017-08-24T16:29:10+00:00 August 23rd, 2017|Accounting|Comments Off on Cutoffs: Don’t count your chickens before they hatch