3 Steps to Deal With an Angry Vendor & Late Payment Invoice
You may wonder how to deal with a late payment, as either a company providing services or purchasing them from a vendor. Being on either side of the coin is not fun, especially when cash flow is a higher priority. You want to ask for payment without being rude, or in this case wanting to […]
Accounting 101 – The P&L Statement
Knowing how to calculate, analyze, and manage your profit & loss statement is important. You want to know if your business is profitable, and where costs may be too high or revenue too low. The trick is to have it all down on paper. Anyone with any amount of accounting exposure can tell you that […]
Preparing A Profit And Loss Statement for Small Businesses: 4 Important Steps
A profit and loss statement for a small business doesn’t have to incorporate rocket science. You simply have to know how to plug in the numbers for a monthly, quarterly, or annual basis. Then you get a picture of your business’s health and the narrative that investors see. DeepSky has asked this question to our […]
Difference Between Top Line, Bottom Line, and Cash Flow
I recently came across this old saying, “The top line is vanity; the bottom line is sanity; but cash flow is a reality,” and thought – wow – what wise words for entrepreneurs to live by and remember. We may get excited about seeing the numbers related to our first sale, but then we have […]
3 Steps to Organizing Your Chart of Accounts
If you don’t have good bones, everything collapses. Huh? I’m talking about your chart of accounts. What is chart of accounts The chart of accounts is the skeleton of your agency and can provide either very meaningful numbers or numbers that really don’t tell you anything. For those of you scratching your heads, a chart […]
5 Steps to Spring Clean Your Accounting – Purge Your Chart of Accounts
Purge Your Chart of Accounts. Think of your chart of accounts as the backbone of your entire accounting infrastructure. If your millions of financial transactions are like printed photos, your chart of accounts is the photo albums that keep things organized. 90% of the chart of accounts I see are both too generic (resulted from […]
Bad Data Is Worse Than No Data
Bad data is comparable to disinformation, which leads entrepreneurs to wrong conclusions, undesired outcomes, or overspent money unconsciously. Check out this video to see what has been putting your business in danger yet you may not be aware of it during regular operations. We’ve landed a dream customer recently. When we took over and […]
Be Strategic About When You Pay Bills
How to be strategic when you pay bills One of the biggest issues in anyone’s profitability is cash outflow. What is cash outflow? It is a fancy way of saying the money paid out by your organization. When I ask most of our client’s bookkeepers pay their bills, they say: “When we do our check […]
What’s My Break Even Point?
What’s your break-even point? I woke up this morning to a wise tweet from an amazing entrepreneur, Norm Brodsky: When you are starting your #business the most important questions are 1. what’s (yo)ur break even point 2. how will you get there Great point. Unfortunately, entrepreneurs who can answer this question is few and far […]
The Importance of Internal Control
You want to be an honest, accountable company. Why? For one, trust is a commodity that consumers value. Once you lose trust, it can take ages to regain it because people are suspicious by nature. You obviously want to build it up for as long as possible. For another, companies have a great incentive to […]
