Cash Flow Let’s look at the current cash flow from your business. In other words, will you be able to pay the bills that are coming in over the next 30 days? You will look at two ratios for current cash flow. Note that these definitions might be a little different than the standard. These [...]
In September 2006, Leslie Janous of Knoxville, Tennessee, threw an elaborate larger-than-life “sweet 15” party for her daughter. Guests were surprised at the level of luxury, wondering perhaps how a bookkeeper could afford such an extravagant celebration, but, as it was disclosed later by an unnamed guest “some people save for years and years for [...]
There are three critical elements of profit that are reported on the Business Financial Scorecard. These numbers must be tracked regularly, make a habit of it. Gross Income Gross Profit Net Profit Following is a brief explanation of each element, along with questions you should be asking about your business performance. Gross Income Gross income [...]
Statistics show that small businesses are more likely to become the victims of fraud than larger businesses. According to information published by the Association for Certified Fraud Examiners, the smallest organizations (100 employees or less), suffered higher losses than larger organizations. While many times large organizations have the financial means to recover from such attacks, [...]
There is a saying in stock investing that the trend is your friend. The same is true for your business. Your business numbers might look phenomenal right now, but if they used to be super phenomenal, you’re on a downward trend that could be a serious problem. Contrast that with numbers that don’t look great. [...]
For a period of seven years, Judy Del Galdo, 66 and her son Joseph Del Galdo, 46, defrauded two New York family owned textile businesses, Hi-Fashion Fabrics Inc., and Timeless Treasures Fabrics Inc., for an estimated total of $16 million. Judy Del Galdo had been employed by the companies as a bookkeeper for over 22 [...]
It all starts with good bookkeeping. If you don’t have good, current financial statements, then make that your number one priority. Without solid financial statements, you can’t make good decisions about your business. You won’t know what is working and what isn’t. And without the financial statements the following advice won’t really make a lot [...]
In January 2010, Douglas Ross Zuber, of Phoenix, Arizona, was sentenced to 6 years in prison for an $11 million embezzlement scheme perpetrated against his former employer, Harvard Investments Inc. According to the charges, Mr. Zuber embezzled nearly $11 million from Harvard Investments Inc., and its subsidiaries. Between 1999 and 2006, Douglas Zuber was employed [...]
Following are some common business valuation techniques. Discounted Earnings. Determines that value of your business based upon the present value of projected future earnings, discounted by the required rate of return. Usually, the question is how well earnings are projected. Discounted Cash Flow Valuation. In discounted cash flow, the present value of liabilities is subtracted [...]
Effective employee screening, systematic and thorough background checks—as a business owner, you are certainly acquainted with the terminology but what does it really mean for your organization? Is your Human Resources team aware of the many ways in which information provided by potential employees can be fabricated? Falsified resumes are submitted to unsuspecting companies all [...]
