Author: David J Hoare MSA
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Using Cash in Construction
There is a notion in business that using cash to pay for materials or service is illegal. IT IS NOT ILLEGAL TO PAY FOR MATERIALS OR SERVICE WITH CASH. It is illegal to do this if you do not properly document the transaction.
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Fair Market Value
Value at the individual level is strictly personal. But as more buyers for the same item come into play the price of the item begins to stabilize. If there are hundreds of thousands of buyers, the price reaches a high level of consistency or what is called ‘Fair Market Value’.
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Working Capital
Cash is the lifeblood of every business. Without cash a business operation can come to a standstill. Cash is one component of working capital, a term referring to current assets (Gross Working Capital) less payables and accrued expenses.
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Cash Flow – Introduction
Insolvency is defined as the inability to pay liabilities as they come due. To meet the demand of creditors cash is required. For most small businesses there are as little as a single source to multiple sources of cash.
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Perpetual Inventory
Most small businesses use the annual inventory system to determine ending inventory value. Any adjustments are to the income statement inside the cost of goods sold formula. This is acceptable if management only wanted accurate financial statements once a year. But this is unrealistic for a small business.
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Front and Back Offices -Differences
The terms ‘Front’ and ‘Back Office’ are used in business to refer to the form of office work conducted. In general the front office interacts with customers/clients and handles the day-to-day activity. The back office is where management leads the organization and handles the underlying financial affairs.
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Office Management- Introduction
Every small business has a physical spot to process paperwork, whether it’s a notebook in a truck for a contractor or a large building complex with tens of employees for a multi-million dollar operation, the paperwork has to get processed somewhere. But there is more to this than the physical facility, it is more about the…
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Profit and Loss Statement Using Class Accounting
Class accounting breaks down sales and the associated cost of sales into functional groups. Whether you use divisions or departments or product/service lines class accounting allows you to identify those more profitable areas of operations.
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Hiring Process – 5 Steps
Just like a manufacturing assembly line, the human resources department uses a process to find potential candidates, recruit qualified applicants, interview, hire and train the best person for the respected position.
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Micro Business
Micro businesses are all around us. Often overlooked and rarely given a second thought they are the backbone of our economic system. From the local beauty salon to the Mom and Pop pizza shop; micro businesses are everywhere. Micro business is defined as the small closely held operation that provides a family a supplemental or primary…