Tag Archives: control of a business

Cash Flow is King …

In my experience, many business owners focus their attention on the Profit and Loss (P & L) Statement when considering their plan.  “As long as I am making a profit everything will then fall into place.” they say.  Not so …. Most small business owners who are not usually trained in accounting do not understand the importance… Read More »

To Map or not to Map …

If your accounting system has been around for a while, you will have many general ledger accounts. New accounts were created when you needed to watch a particular expense for a period of time or your bookkeeper created a new account to allocate an unknown expense when you were overseas that time.  It has stayed… Read More »

Financial Planning – Not a waste of time

Why financial planning is not a waste of time. People say to me that they cannot predict the financial outcome of their business and therefore spending time doing a budget forecast is a waste of precious time. The forecast never works they say. This is an outdated view. Given the right tools and consistency of… Read More »

Let’s clear up Gross Margin/Profit and Mark-up

I was once talking to a student who was puzzled about Gross Margin – “Is it Gross because its big or is it that it is ugly?” he asked. (Was he joking???). If you are well versed in these terms no need to read further. However, I have come across small businesses that are not… Read More »

How do you know if a business is “in Control”?

Whilst how best to control a business is a complex issue and people write papers or even whole books on the topic, this post explores some of the main characteristics of a business that is in control. The final measure of success is that the business can consistently trade profitably. You cannot get around the fact that… Read More »