Accounting is a foreign language. Or at least that’s how many CEOs and business owners see it. If they get monthly financial reports, they may only look at two numbers on the income statement – the top number (sales) and the bottom number (net profit). That...
I wrote this article for my (print) newsletter 25 years ago. It’s so relevant even today that I decided to republish it, even though it’s longer than my usual post. I think it’s worth the extra few minutes you’ll spend reading it. We are often asked: What is the most...
It will cost you $2.15 today for what would have cost you $1 in 1990. You don’t have to read about the effects of inflation to know that it’s hitting everyone and every company. You see it at the gas pump and the supermarket. Your managers see it in the cost of raw...
As everybody knows, nearly everyone has advice for the CEO/business owner, some of it sound, and some not so sound. But when all is said and done, when it comes to making a profit and translating that into cash in the bank, there are a handful of basic financial...
This question still comes up regularly: Should we lease or buy the equipment we will need next year? Often this is simply a cash flow question. But about half the time the questioner is actually asking which method is least expensive. So here’s the answer(s). #1...
