Tag Archives | business planning

four kings and hundred dollar bills

How Do Profits and Cash Flow Differ?

How do profits and cash flow differ? Business owners sometimes mistakenly equate profits with cash flow. Here’s how this can lead to surprises when managing day-to-day operations — and why many profitable companies experience cash shortages. Working capital Profits are closely related to taxable income. Reported at the bottom of your company’s income statement, they’re […]

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3d arrows outsourcing concept

Outsourcing Business Functions

Business owners seem to have less and less time. One thing in plentiful supply in today’s business world is help. Orbiting every industry are providers, consultancies and independent contractors offering a wide array of support services. Simply put, it’s never been easier to outsource certain business functions so you can better focus on fulfilling your […]

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Chris West, CPA

Executing on Strategy

At the dawn of a new year, it is essential for all business owners to step back, breath and contemplate the future of their business and the wildly important goals they hope to achieve in the coming year.  Every business has a strategy.  Even the “no strategy” approach is, in essence, a strategy.  I tend […]

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direct versus indirect costs

Accounting for Overhead Costs

Accurate overhead allocations are essential to understanding financial performance and making informed pricing decisions. Here’s guidance on how to estimate overhead rates to allocate these indirect costs to your products and how to adjust for variances that may occur. What’s included in overhead? Overhead costs are a part of every business. These accounts frequently serve […]

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Balance concept - woman showing something on the palms of her hands

Cash vs. Accrual Method of Accounting

Cash vs. Accrual Method of Accounting Small businesses often use the cash-basis method of accounting. As businesses grow, they usually convert to accrual-basis reporting for federal tax purposes and to conform with U.S. Generally Accepted Accounting Principles (GAAP). Starting this tax year, the Tax Cuts and Jobs Act (TCJA) has increased the threshold for businesses […]

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