Archive | Finance

A Solution to the FDIC Insurance Limits

When Silicon Valley and Signature Banks failed recently, there was a lot in the media about the FDIC insurance limit of $250,000 per person per bank. Any funds in a bank beyond that are uninsured in the case of bank failure. We all saw this point made again and again in the news. It turns […]

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More Free Money!

During the pandemic, the CARES Act provided several programs to help businesses. The best known was the Payroll Protection Program (PPP), which had two phases, and was extremely popular. Another program under the CARES Act was the Employee Retention Credit (ERC), sometimes known as the Employee Retention Tax Credit (ERTC). The ERC was nowhere near […]

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The End of LIBOR

Do you lay awake at night wondering, “What will I do when LIBOR ends?” No? Me either. But if you have any financial instruments tied to LIBOR, you probably should pay a little attention to this issue. First, what is LIBOR? LIBOR is the London Interbank Offered Rate. It is a benchmark rate that indicates […]

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A Plan for Profit Improvement

In my last blog I discussed the importance of timely and accurate financial statements for your business. This begins with having the right people with the proper training to do the job. But what if you’re getting good financial statements on a timely basis, but the profits aren’t up to your expectations? Then what? What’s […]

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Improving Margins

In my last post I wrote about having Accurate and Timely Financial Information. Let’s say you’ve got your accounting straightened out so that you have good financial information on a timely basis. Now you’ve got something to base decisions on. Let’s assume neither your gross profit margin nor your net income is as high as […]

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Of Profit Levers, Cost Behaviors and Sparklines

I am usually asked to work with a client because of one or more of these three reasons: 1. Poor accounting information. 2. Poor profitability. 3. Poor cash flow. In terms of priorities, sometimes cash flow just can’t be ignored. If I have a choice, I begin with accounting information, meaning accurate and timely financial […]

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