Many small business owners inevitably review their financial statements at the end of the year and look for deductions to minimize taxable profit, thereby reducing taxes owed. Taking deductions to legally reduce income, and therefore tax liabilities, probably seems like an ideal strategy, but it may actually limit your company’s ability to grow in the future.
Another informal survey where bankers discuss what they wished every client would do with their newly approved small business loan.
One of the many useful metrics in tracking your financials that many small businesses may not have a handle on is your Accounts Receivable Turnover. Simply put, Accounts Receivable Turnover is the ratio of net credit sales over average accounts receivable in a given period: a measure of how effective your business is at extending trade credit and collecting that debt from customers.
Who are your trusted advisors for your small business? If that’s not a question you can answer immediately, then you may not be taking full advantage of valuable resources available to you.
Your small business budget shouldn't just be something you do because your banker requires it. A properly created budget can be an integral tool to make sure you're meeting your goals or helping you understand why you are not.
Asset-Based Lending: The Cost of Capital v. Opportunity Cost In the world of Asset-Based Lending (“ABL”), Accounts Receivable Financing and Factoring, many times the first objection we hear from a potential prospect is, “I can’t afford alternative financing because it’s too expensive.”
Cash Flow Forecasting and a budget are both valuable tools in running a small business. At first glance, the two reports seem somewhat similar, however their central purposes are distinct.