Profit Doesn’t Mean You Can Pay Your Bills: Understanding the Cash Flow Disconnect Two companies report the same net income. One is thriving, the other can’t make payroll… At first glance, this makes no sense. Isn’t profit the whole point? If the income statement says you’re making money, shouldn’t cash be piling up? Not necessarily.
Why Business Owners Can’t Afford to Ignore Their Accounting Too many business owners still rely on two things to “handle” accounting: a tax CPA and a bookkeeper. And while both serve important roles, neither was designed to run your financial engine. We’ve been saying it for years — in article after article — but it’s
Why More Companies Are Outsourcing Accounting & FP&A – And What It Means for Your Business For years, accounting and Financial Planning & Analysis (FP&A) were considered strictly in-house functions, managed by internal teams who were deeply familiar with company operations. But as companies grow and the financial landscape becomes more complex, more mid-sized businesses
What is the Letter of Intent? When buying or selling a business, the first written document that outlines the terms of the deal is the Letter of Intent, often referred to as the “LOI.” Sophisticated and unsophisticated buyers and sellers frequently use an LOI. The LOI is always (and should always be) a non-binding document.
Valuations of a business depend on many factors, including but not limited to macroeconomic trends, industry conditions, inflation, interest rates, company performance, and management risks. While generalizations should be avoided, professional valuation work is critical to obtaining an accurate enterprise value. Valuation Trends Historical trends reveal that valuations often follow cycles driven by economic and
The Accounting Gap: It’s unfortunate, but true. A large gap exists between the accounting departments of large or publicly traded companies and smaller or private companies. In our past 25 years of consulting we’ve noticed that more often than not, these smaller/private companies will fill the gap with Bookkeepers, rather than the degreed Accountants/CPAs they
