Are You A Linchpin or A Cog?

| May 29, 2010

Linchpins are critically important portions of a machine. A cog is that portion, which is disposable. Think of your printer…

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Income Recognition

| May 22, 2010

When a client pays for work to be done in the future by way of a deposit or retainer, this is not income, this is a liability called unearned revenue.

According to the GAAP . . .

According to the GAAP . . .

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Prepaid Expenses

| May 21, 2010

A prepaid expense is an expense that is paid for in advance of receiving the benefit of that expense. This includes things like insurance, dues and subscriptions, a workshop or any other expense you have to pay for in advance.

According to the GAAP . . .

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Current Portion of Long Term Debt

| May 20, 2010

Current portion of long term debt is the principal portion of the debt that must be paid within the next year.

It is important to reflect the current portion of long term debt in a business’s currently liabilities because these payments reduce the availability of working capital (current assets – current liabilities) and reflect the resources available to operate the business.

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20 Indicators Your Financials are Wrong

| May 8, 2010

I have looked at a lot of financial statements over the last five years from at least 250 different companies in almost every industry imaginable.  They all had one thing in common – they were, in some way, wrong.  This is a major challenge of most start-up, emerging, and medium-sized businesses.
After writing and article titled […]

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Submitting Proof

| May 7, 2010

…A friend of mine worked in the home improvement industry, an industry known for scam artists who take a deposit and disappear. To prove his credibility, he composed a two-inch binder full of thank you letters and testimonials about his company. He would plop that beast down on the kitchen table for his perspective customers to read, while he was taking measurements…

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5 Things You Should Never Tell Investors

| May 2, 2010

The following article has been re-posted May 2, 2010 from http://www.openforum.com/idea-hub/topics/money/article/5-things-you-should-never-tell-investors-ken-kaufman 5 Things You Should Never Tell Investors Ken Kaufman Apr 14, 2010 – Are you hoping to raise some capital to get your business off the ground? Are you anxiously waiting for the day when your bank account is flush with newly-injected investor cash? Are […]

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