Employee raises and performance reviews can be some of the most emotionally charged conversations a business owner has. An employee may feel they have worked hard enough to deserve an increase, while a manager may feel guilty saying no. Meanwhile, the business still has to determine whether that compensation decision is measurable, equitable, and financially…

Business owners are surrounded by numbers. However, understanding 4 Business Values to Implement for Better Decision Making can provide guidance beyond just the figures. Revenue. Profit. Payroll. Cash. Sales. Expenses. EBITDA. Customer counts. Leads. Inventory. Debt. However, the challenge is rarely a lack of information. More often, the challenge is knowing which information matters, what…

A business owner told me recently that this was “the year we go big.” New hires, a second location, a bigger marketing budget — all at once, all in the next two quarters. For a plan like this to succeed, there are Three Important Numbers to Measure to ensure you’re on the right track. My…

Two business owners tell me the same number every year: $1.2 million in revenue. One of them takes home a healthy owner’s salary, has three months of expenses sitting in the bank, and sleeps fine at night. The other is maxed out on a line of credit, hasn’t paid themselves consistently in months, and is…

This week, I talked with a business owner who was paying $1,800 a month for a “fractional CFO.” Naturally, I asked what they were actually receiving for that investment. In this post, you’ll find CFO Service Expectations Explained so you can better understand what to look for. The answer was transaction categorization, month-end close, and…

You buy a $100 Amazon gift card on the company credit card. Using gift cards in a business is more common than you might think, and raises some important questions about accounting and best practices. Seems simple enough. But that $100 could be: A thank-you gift for a client An employee reward A social media…

Most small businesses treat buying as an errand. However, adopting a strategic procurement mindset can make a significant difference. Something is needed. Someone finds a vendor. The invoice arrives and gets paid. Twelve months later, nobody remembers why that vendor was chosen, what the contract says, or whether it renewed. Meanwhile, purchased goods and services…

Revenue went from $2.1 million to $3.4 million. This change raises important questions about growth vs scale for any business. Net income went from $214,000 to $231,000. The owner worked harder, hired more people, took on more risk, and personally netted almost nothing extra. This is one of the most common and most demoralizing patterns…

A business rings up $50,000 in sales for the month. With sales tax, $53,400 hits the bank. That extra $3,400 isn’t profit—it’s the company’s sales tax liability. The owner sees $53,400 available. Only $50,000 of it belongs to the business. The other $3,400 was collected from customers on behalf of the state. The business is…