A number of business owners that I meet tell me that the reason they prepare their monthly financials in the format they do is because that is how they report to the IRS. “We pay taxes on a cash basis, so we prepare all our financials that way”.
 

Pay Yourself When You Pay Your Employees

Business owners pay their employees regularly, but many don’t pay themselves at the same time,  and this is a serious mistake that can lead to failure to achieve key personal financial goals. One major reason to own a business is to make more money for yourself than you could by working for somebody else, yet many people put themselves at the bottom of the list, get paid after everybody else and end up making less, not more. 
 
Financial statements can be very misleading when you are comparing months that contain different numbers of working days. The traditional approach presents numbers exactly as they appear from the financial records; producing meaningful financial statements calls for an entirely different way of presenting the information.
 

Expense Reorganization

Expenses seem to breed and need to be sprayed regularly if they are to be kept under control. The problem in reviewing them is that the way accountants present them is not helpful and they need to be looked at in a different way that makes review easier.
 

Steve’s Rules of Barter

Barter is a legitimate mechanism, but it is rare that you find a situation where it really works on a 1 to 1 basis.  All too often, you would not in fact buy the service if there was no barter involved, and it makes little sense to go ahead under those circumstances.
 

Build Your Business with Credit Card Inertia

People often tell me that they don’t take credit cards and act as though it is somehow beneath them.  Lawyers, in particular, have told me that they feel that it is in some way inappropriate. 
 
The measurement of contract revenue streams present some interesting challenges, both in the ways that they can be recorded on the financial statements and in the ways that they can be used to report wins and losses. In this article I will look only at how they can be more meaningfully presented on the financial statements.
 
There are very few businesses where everything is working perfectly, but a great number where the owner thinks that everything is fine. This mindset can best be summed up by the text of an advertisement I saw years ago that said (as near as I can remember):