Recent Articles

April 2015

Progress Billings in Construction


Just like a tip of an iceberg, a progress billing for a construction project is an invoice for a small part of the overall contract value.  It needs to be recorded correctly and presented to management in a way that is understandable and beneficial [...]

Advertising – Monitor Performance


In small business it is difficult to know if your advertising is effective.  Often the methods or campaigns you use to get customers to your store or to purchase your product appear to be effective but in reality are nothing more than usual volume [...]

Mission Statement


A mission statement is a written document identifying the businesses’ primary reason for existence.  It should convey the core values and the principals of the company.  It should be reviewed with staff frequently to remind everyone of the chief [...]

Negative Basis in Business – Tax Shelters


Almost one third of all the small businesses I’ve seen in my career had negative basis.  Most of the owners, actually almost every one of them did not understand what I meant by negative basis.  In private, I would lower my head and shake it in [...]

Shareholder Dynamics in Small Business


The majority of small businesses are owned by a single individual.  An additional pool is family owned or controlled.  The balance usually involves friends or relatives that are passive in ownership.  These forms of ownership create some [...]

Project Accounting Principles for Residential Contractors


Almost every residential contractor I had as a client had no clue of their financial position as it related to any one of their residential contracts.  None of them knew whether the project was fully funded, over funded or unfunded at any point in [...]

Capital Gains – Introduction to Fundamentals


When an individual or business sells an asset, the gain or loss is classified into one of two distinct tax groups – ordinary or capital.  The tax classification is strictly tied to the nature of the asset sold.  For most businesses, the assets [...]