business profits

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

2021-04-12T14:55:31-06:00January 29th, 2019|

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

2021-04-12T14:55:51-06:00January 2nd, 2019|

Business Cost-Control Strategies

“That’s just the cost of doing business.” You’ve probably heard this expression many times. It’s true that, to invoke another cliché, you’ve got to spend money to make money. But that doesn’t mean you have to take rising operational costs sitting down. Cost control is a formal management technique through

2021-04-12T14:56:24-06:00June 19th, 2018|

Decreasing Profits: How Low Can You Go?

If your profits are decreasing compared to revenue and assets, your financial statements may provide insight into what’s happening and how to improve your performance. Watch for red flags As you sell more and invest in additional assets, profits should, in theory, increase by a proportionate amount. However, that’s not

2021-04-12T14:56:25-06:00May 23rd, 2018|
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