Recent Articles

Cash Counts

The concept that ‘Cash’ is the most important aspect of business operations. In reality it is not, but all businesses have to deal with making sure cash is available to continue operations.

Quick Ratio – Definition, Explanation and Proper Use

01/14/2014

The quick ratio is a formula used in business to identify the ability of a business to pay its current liabilities.  It is also known as the ‘Acid Test’ formula (ratio).  In the large markets this formula is one of the financial industry [...]

Effective Internal Controls for Cash

03/18/2013

All businesses should have internal controls to deter fraud, detect theft, and preserve assets.  Of all the assets, cash is the easiest to misappropriate.  Effective internal controls for cash prevent the proverbial hand in the cookie jar.   So [...]

An Explanation of Current Assets

03/11/2013

The asset side of the balance sheet is divided into 3 major sections.  They include current assets, fixed assets, and other assets.  Current assets carry the most value to the small business entrepreneur because of the cash conversion aspect.  [...]

The Different Types of Bank Loans

02/19/2013

There are many different types of bank loans, each having their own respective purpose.  All bank loans are categorized into two distinct groupings; secured and unsecured loans.  Within in each category of loans there are several different [...]

What is Accrual Accounting?

02/11/2013

Accrual accounting is the preferred method of accounting for all business operations.  Any publicly traded company must comply with the principles of accrual accounting.  Small business operations can choose between cash and accrual accounting for [...]

Cash Flow – A Basic Definition

01/16/2013

Cash flow is the ability of a business to turn its product or service into cash.  It is generally measured in dollars or in dollars against a time period.  The simplest example I can think of is a child selling lemonade.  The child purchases the [...]

Liquidity – What Does This Mean?

01/12/2013

In business, liquidity is defined as the period of time it takes to turn assets into cash.  It takes 20 minutes to turn the balance in the checking account into cash.  You head on down to the bank and present a check.  You get cash.  But most [...]

How to Find Investment Capital – The Vendor Connection

12/17/2012

All vendors look for avenues to expand their market share or maintain their market share.  Many times it is to their benefit to provide start-up capital to potential point of sale opportunities.  If they can assure themselves of a long term buyer [...]

How to Find Investment Capital – The Family Connection

12/11/2012

There is one responsibility of all business entrepreneurs that is loathed more than any other.  It’s asking for money.  First off, you have to find financial resources and then you have to ask for money.  This article is dedicated to finding [...]
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