Monthly Archives: July 2014

If revenue is the most important task of your business, what’s next?

So, after revenue what’s next? This is easy….revenue that generates profit and timely cash flow. You can’t make a profit without revenue. You can be profitable and cash poor with revenue. You can be cash rich and lose money. There … Continue reading

Posted in Business Plan, Finance, General Accounting, Small Business, Uncategorized | Leave a comment

My company owes $30,000 in taxes, but my books showed a loss! What?

True story. Company X (as we will call them) had a small net loss their books and their QuickBooks accounting system is kept on the accrual basis. The balances are all correct. The company assumed that they owed no taxes … Continue reading

Posted in Entrepreneurship, Finance, General Accounting, Small Business, Uncategorized | Leave a comment

The tale of the chaotic accounting system

As you read this situation, try to be open-minded to see if some or all of the information applies to your company. Company Y installs QuickBooks accounting software for their small business with the best of hope. Their decision was … Continue reading

Posted in Entrepreneurship, Finance, General Accounting, Planning, Small Business, Start-Ups | Leave a comment

Sales increased by 10%, but profit is down?!

Yes, this happens. The good news is your sales increased by 10%. The bad news is your sales increased by 10% and profit decreased due to selling low margin products and services. Or worse, profit margins are slipping due to … Continue reading

Posted in Finance, General Accounting, Planning, Small Business, Uncategorized | Leave a comment

Don’t Lose Your Potential Award from an Inadequate Accounting System

The federal government has strict requirements of an adequate accounting system. If you are a first-time awardee, or had your accounting system reviewed in the past, BEWARE. One thing is clear: federal agencies, especially DCAA and NSF are in a … Continue reading

Posted in Uncategorized | 1 Comment

Do You Use Excel for Timekeeping Under Your Government Contract? BEWARE!

One office of DCAA has rejected the use of Excel for timesheets where time is entered onto the spreadsheet given the flexibility of changing time after the fact, thus compromising the integrity of your entire accounting and billing system. While … Continue reading

Posted in Uncategorized | Leave a comment

Are you an LLC? Why?

Do you like to pay more taxes? If so, choose to be an LLC. How is it possible that a simple, pass-through business organization can result in more taxes than its S-Corporation counterpart? It’s called self-employment tax (or SET which … Continue reading

Posted in Uncategorized | Leave a comment