Small business owners must pay close attention to financial reports, because they give essential insights into the financial health and performance of the business. Correctly analyzing the balance sheet, income statement, and cash flow statement will yield invaluable...
In the last article, we introduced a key metric called the Labor Efficiency Ratio (LER). Basically, the LER measured how much a unit of revenue costs to produce. We’d encourage you to go back and read the previous article if you haven’t already. The higher the LER,...
Gain insight into a big expense from this simple metric For most small companies, labor is the biggest expense. So as a business owner or manager, you need to keep a close eye on the relationship between the money spent on employees and contractors and the resulting...
Examining A/P is very important right now as credit starts to freeze Cash is always king when it comes to the accounting of your small business, but especially right now. Nearly daily the headlines are filled with concerns about credit seizing up for smaller companies...
Don’t be passive about your accounts over $250K The collapse of Silicon Valley Bank (SVB), followed closely by Signature Bank, earlier this month has a lot of small businesses and startups doing some self-reflecting on the way they manage their finances. Many...
