Recent Articles

January 2015

Referrals in Business

01/31/2015

By far, the single most effective and inexpensive marketing tool is referrals.  Simply stated it is a ‘Selective Word of Mouth’ form of marketing.  The key to its success relies in the ‘Ask’.  This is where the business asks its existing [...]

Cost of Sales – Various Formats

01/27/2015

Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’.  Basically, most business entrepreneurs and even accountants don’t realize that it has several different names and [...]

Estimated Tax Payments – Why and How

01/25/2015

In the normal taxpayer relationship with the Internal Revenue Service, the taxpayer is an employee and via withholding, taxes are paid the U.S. Government by the employer.  Basically the employer pays the tax after each payroll run on behalf of all [...]

Real Estate Syndication

01/22/2015

Have you ever wondered how apartment or office complexes are financed?  A typical complex will have 80 to 100 units and the cost of construction will approximate $7,000,000.  So where does this money come from?  Your average person will think it [...]

Limited Liability Company – Step By Step Setup

01/17/2015

There is multi-step process to establish a Limited Liability Company (LLC).  You must first be recognized by the state of origin and then apply to the Internal Revenue Service to identify the particular tax entity arrangement.  Both recognition [...]

Booth Rental – Legal and IRS Compliance

01/13/2015

A long standing custom in the hair salon industry is owners of salons leasing out booths to hair stylists.  If not properly documented and exercised appropriately, the owner opens the door for many legal issues.  Booth rental is legal in many [...]

Fixed and Variable Costs in a Restaurant

01/12/2015

Many restaurant owners and managers do not understand the difference between their fixed and variable costs.  The problem with defining the two types of costs relates to their connection with sales.  In addition, reasonable assumptions have to be [...]

Price to Earnings Ratio – Introduction and Interpretation

01/11/2015

Price to Earnings Ratio (P/E) is an analysis tool used to evaluate publicly traded stock.  It is a simple mathematical formula relating the stock price in the market against the prior 12 months of earnings.  The following is the formula:  Price [...]
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