Category: Profitability

Continuous Accounting: The New Age of Accounting

See Also: Reducing Your Cash Conversion Cycle Key Performance Indicators (KPI’s) Accounting Principles 1, 2, and 3 Accounting Principles 5, 6, and 7 Continuous Accounting: The New Age of Accounting Continuous Accounting is the new age of accounting. It provides a more efficient way to review financial performance in a real-time automated process, and a trustworthy, repeatable accounting cycle

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How Does a CFO Bring Value to a Company?

See also: Role of a CFO 5 Ways a CFO Adds Value EBITDA Definition How Does a CFO Bring Value to a Company? Most CEOs don’t understand how a CFO brings value to their company. They see CFOs as overhead rather than income-producers. CEOs typically see the role of a CFO as a CPA or a

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Projecting Revenue

Whether times are good or bad, one task that companies still must undertake is projecting revenue.  The tougher the times, the more important these forecasts become. When projecting revenue, it’s important to remember that your customer base is likely worldwide.  Consequently, you must consider what type of economy your customer is operating in to accurately

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If It’s Always On Sale, Is It Ever On Sale?

When you walk into a shopping mall, what do you see? I see sale signs everywhere! How could a company ever make money if its products or services are always on sale? 50% off, buy 1 get 1 free, 70%… It never ends. Have you wondered if it’s always on sale, is it ever on sale? Marketing

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Case Study: Pricing for Profit

Several years ago, I was consulting with a client in the staffing industry that was having a profitability problem: We have happy customers and seem to be doing well, but we just aren’t making more money… Sound familiar? After visiting with the frustrated owner of the business, I visited various departments to understand the people and

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Breakeven Analysis

According to Webster’s Dictionary, the breakeven point is defined as “the point at which cost and income are equal and there is neither profit nor loss“.  The purpose of breakeven analysis is to determine the point at which revenue received equals the costs associated with receiving the revenue.  Simply put, how much revenue we need

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Return on Investment (ROI)

See Also: Return on Invested Capital (ROIC) Return on Common Equity Internal Rate of Return Method Return on Investment (ROI) Definition Return on investment (ROI) is the ratio of profit made in a financial year as a percentage of an investment. In other words, ROI reveals the overall benefit (return) of an investment using the

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Non-Profit vs Not-for-Profit

Non-Profit vs Not-For-Profit Comparison People often interchange Non-profit vs Not-for-profit to refer to organizations that do not redistribute profits or funds to owners or shareholders. In the U.S., the term “non-profit” is used more common. However, not-for-profit is rising in popularity as some organizations want to emphasize that their main objectives do not include making

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Is Employee Turnover a Problem?

Is employee turnover a problem in all companies? All companies lose employees. It’s healthy for an organization to have a measurable turnover. Sometimes people don’t fit into a company’s culture. But other times, employees have emergencies or life changing experiences that separate them from the company.  However, it is not to say that a 0%

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Employee Turnover

See Also: Is Employee Turnover a Problem? Cost of Turnover Demand for Talented People: Addressing Employee Turnover Protect Yourself: A Guide to Non-Compete Agreements Strategy for Managing Cash Hiring Process is Getting Longer Outsource Definition PEO or Outsource Payroll Employee Turnover Definition Employee turnover, or staff turnover, is a measurement of how many employees are

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Setting Prices

When we start working with a new client, one of the first conversations we have is about setting prices.  A company’s pricing strategy (and whether they have articulated it) tells me a lot about the culture of the organization and how they make money.   Here’s a video that discusses different pricing strategies as well as which

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