The Year is More than Half Over, Is Your Budget Still Relevant?

Has your company ever been in the position where the budget you put together in the fall seems less and less relevant as each month goes on? If so, read on. Revenue-related variances: If the products you sell are of a monthly recurring charge nature (MRCs), your monthly revenue on your accrual-based financial statements are

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You’ve Completed Your Budget. Now What?

Companies big and small develop an annual budget and spend a lot of management time discussing, creating and finalizing it. Much of that time and effort is wasted if you don’t spend even more time working to execute the plan in the budget and hit your financial goals. Here are five tips for achieving the

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Your Balance Sheet, How It Can Help You

Whether you keep your books on a cash or accrual basis, don’t forget to pay attention to your balance sheet. While your income statement (or Profit & Loss or P&L) tells you how your business is performing, failure to look at your balance sheet at the same time can either inadvertently hide activity that belongs

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Zero-Based Budgeting

What is Zero-Based Budgeting? While the answer is simple, the execution is hard. Zero-Based-Budgeting means you start with a completely blank slate. No dollar amounts or other numbers for revenues or expenses. You literally start with zero. Why would a company create a Zero-Based Budget? By starting with zero, you force yourself to think about

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Travel & Entertainment Reporting

What do people hate worse than filling out an expense report? Answer: being audited by the IRS. While reporting all of your company’s travel & entertainment (T&E) expenses correctly will help you if you are audited, it will not help you avoid that all painful IRS audit. At worst, employees think signing off on a

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Revenue — billed, collected, earned

While not every business follows or, for that matter, needs to keep their books on an accrual basis or in accordance with Generally Accepted Accounting Principles (GAAP), I believe it’s very important for everybody running a business to know what the differences are. Let’s start with an example. You sell a joke-writing service to accountants,

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