Financial Clarity for Entrepreneurs

Category Archives: Running the Numbers

Are You Making As Much As You Think?

February 6, 2009 0 Comments

As the owner and manager of your business you earn income from two sources: the salary you make as an employee of your business and the profit you make as the owner.  Conflating the two leads to inaccurate conclusions about the success of your business. Payroll Is Not Reality The smart business owner manipulates his […]

Your LLC Is Wasting Money

March 8, 2008 0 Comments

Edit for clarification – By default, an LLC is treated for tax purposes as either a Sole Proprietorship (single owner LLC) or a Partnership (multiple owner LLC.)  You can, however, elect to be treated as a corporation and then elect that corporate status to be S Corp.  These are two separate elections and the IRS […]

How To Set Prices

May 28, 2007 0 Comments

The folks over at FreelanceSwitch have a slick Freelance Hourly Rate Calculator. I say slick, because it’s a nice piece of software, but I think it gets the order of things backwards. It’s actually pretty common for small businesses (and consultants and freelancers) to attempt a cost-plus approach to setting prices. It’s easy to add […]

Lag Your Putts – Not Your Indicators

May 20, 2007 0 Comments

Lagging Indicators are those pieces of data that tell us what happened. They’re history. The most common collection of lagging indicators that business owners are familiar with are the financial statements – Balance Sheet, Income Statement and Cash Flow Statement – along with the other management and financial reports pouring forth from the accounting department. […]

Cash Flow Leapfrog

May 15, 2007 0 Comments

Here’s a tool I use (Leapfrog Spreadsheet) with some of my clients who need to manage for breakeven cash flow on a monthly basis. I call it cash flow leapfrog because it demonstrates the link between revenue when booked and cash when it comes in the door. This tool works best when a company has […]