How Much Profit Should You Target?
Many business owners underestimate the importance of planning- specifically having a detailed, written budget and consciously choosing their level of profitability. An important component of that planning is how to decide what your business’ target level of profitability should be. And the answer is not “as much as possible”. Obviously you want as much profit […]
The Flexible Budget – Inside the CFO’s Toolbox & Example
Let’s talk about what is known as a Flexible Budget. This is not flexible budgeting in the sense that the government uses – “No money in the budget? Hey, we’re flexible. Spend away!” No, a Flexible Budget is actually a very useful management tool which brings a new level of clarity to budget-to-actual analysis. In […]
Is the Flight Attendant Flying the Plane?
Mismatching Financial Skills Causes Many Businesses to Crash In today’s article we’ll present a common flaw in thinking that occurs at many small businesses. The first time we meet with a business owner to review their accounting & financial matters, we have an informal “needs analysis” discussion. A variety of common issues come up in […]
Using a Budget to Forecast Profit & Cash Flow in Your Business
Budgets: The Financial Crystal Ball It’s that time of year again. The kids are back to school. Baseball season is winding down, and football season is well underway. The days are getting shorter, and there’s a chill in the air. This can only mean that we are in the midst of what some people call their […]