This time last year, WePay reported that nearly half of business owners have been experiencing cash flow problems. While the state of the economy can bear some of the blame, the importance of cash flow is something that many business owners greatly underestimate. So what exactly is cash flow and why is it so important? A...
In the world of accounting, ratios give and invaluable amount of information about your company and it’s fiscal well being. Accountants use financial ratio analysis on a regular basis. These analyses help to evaluate the financial performance by comparing financial ratios of a business over various periods of time to other businesses in the...
When you read the phrase “stress test”, what thoughts pop into your head? I’ll go ahead and assume that they aren’t very positive. Most people think that banks and businesses only undergo stress testing when they are on the brink of disaster, but stress test shouldn’t be a last resort of your financial plan. Stress...
Fish can only be out of water for a few minutes before they stopping flopping around and start to dehydrate. The same holds true for a business without cash. Much like fish need water; your business needs a sea of cash to survive. Businesses require a steady stream of cash moving in and out...
With a constant cashflow coming in and out of your business, it’s important to make sure that your bank balance matches your book balance. The tedious, but necessary, process is called bank reconciliation, or bank rec for short. Performing a bank reconciliation is a lot like balancing a checkbook, and you do it for...
We all know that cash flow is the life blood of business. Healthy cash flow is essential to a healthy business. When times are tough, many companies start looking for ways to increase their available resources and improve liquidity. If you’ve visited the Online Finance Network blog before, you know that liquidity has come up in...
Business owners really know how to provide quality products and services. But when it comes to simple accounting basics that can make an impact on the success of their business, some business owners are left in the dust. Being a business owner isn’t for everyone, in fact, most businesses don’t make it through their...
You can boost response from potential clients who visit your website by making it easy for them to contact you impulsively. Significant buying decisions always have an emotional foundation, especially when we have a limited understanding of what we’re buying. We do basic analysis: this seems like good SUV, good computer network, good physician,...
A favorite mentor of mine is always telling me you are either “growing” or your “going”. Over the years, I have truly come to appreciate the full impact of this simple wisdom. As more and more people are living beyond their savings and expectations, many baby boomers are finding themselves faced with more changes...
To improve the likelihood of success in your business, I would suggest some simple steps to improve and grow your business over the course of the next twelve months. I will be referring to these simple steps as the Five “R’s”: Revisit, Re-Fresh, Re-Vitalize, Re-Invent and Re-Gain. Re-Visit When was the last time you...