Installing a Financial Operating System We're big fans (and users) of Gino Wickman's EOS (Entrepreneurial Operating System), which outlines a useful framework for business management. I'd highly recommend if you're in need of a basic structure for meetings, people management, and setting a compa...

Let's study turnarounds You might see this title and scratch your head, wondering why you'd want to read about turnarounds or business failures. It turns out there are incredibly valuable nuggets of wisdom in these stories. The foundation of any successfully run business is a strategy everyo...

1) The indirect method of cash reporting The indirect method of reporting cash flow is what you'll see most often. It's the standard format across QuickBooks, other financial software, and for publicly-traded companies. How it works There are 3 sections of cash flow Operating cash = profit ...

Let's talk metrics One challenge in managing finances is the overwhelming amount of numbers and metrics available to look at. Scoreboards in professional sports generally display only the most relevant stats, and your business should do the same. How do we handle it? Stick to 6-7 key metrics ...

Ask 10 different finance pros what their monthly review process looks like and you'll likely get 9-10 different responses. So what is it? Monthly Financial Review (MFR) — Checklist of financial data and review procedures conducted every month (or 30 days) after your books are closed and financi...

How to Optimize Working Capital This is part 3 in a mini-series on working capital (check out part 1 here and part 2 here). Let's recap the basics so far: What is working capital? Receivables (A/R) plus inventory minus payables (A/P). Don't forget to include credit cards.​ Why is it importa...

Profit vs. Cash Flow Ever feel like your business is profitable, but you're still struggling to pay bills and cover day-to-day expenses? Today we'll build on the Working Capital 101 concepts we covered last week and drill deeper into the differences between profit and cash flow. Remember: Prof...

Your Finance Team Every company has a different-looking team running their finances. Here's a quick rundown of the three most common players and what they are (usually) responsible for: Bookkeeper (Accountant): They handle the day-to-day transaction recording, invoicing, bill pay, etc. These...

Financial Frequencies - Zoom In / Zoom Out There are probably 30-40 skills required to be a finance/accounting pro, but to manage a successful business you really only need to master maybe 10 or so... today we'll cover one of those 10 skills... I call this zooming in and out on your business. I...

What makes a great business? When I worked in the investment industry studying and investing in public companies, I was often searching for "great businesses" and over my career developed a short list of characteristics that (I think) make a company great. Why should this matter to you? For ...