A while ago I had the opportunity to be a business consultant for a company. The company was facing with major disorganization in the accounting department that transcended to other areas impacting the operational efficiency, as well as, profitability of the company. Primarily, the strategy was not clear, it was either confused or ambiguous. Hence,… Read More

Ibanessa Hogan 08/30/2019 Most small businesses start operating without having a roadmap that can guide them through the whereabouts of doing business.  Questions such as: Should I expand my product line or should I reinvent the services that I’m already offering? Do I know my Strengths, Weaknesses, Opportunities, and Threats (SWOT)? Should I stop offering… Read More

A Cash Budget is simply a way of keeping track of your incoming flow of money and your disbursements (outflow) per month or week. It’s a real-time inflow and outflow cash management system. It is not a budget, budgets have another purpose, besides they are static. You can use an Excel spreadsheet, like the image… Read More

For the financial information to be accurate, particularly for the investors who will rely on it to the extent of making investment decisions, companies include noncash items in their accounting reports. This is particularly true when using the accrual method of accounting. There are several noncash items like deferred income tax, stock-based compensations, among others.… Read More

When we want to know how our business is doing, we quickly tend to look at our Profit and Loss report. By the way, it is perfectly fine to look at this report because it allows us to see how much sales you generated in the year, why certain expenses are so high, which ones… Read More

Manufacturing overhead costs are direct labors, direct materials and direct expenses, such as electricity used in the factory, depreciation of the machinery, supplies used in the manufacturing process, etc. These costs are based on a predetermined overhead rate. The total rate gets divided by the total number of machine hours which are most likely determined… Read More

According to Zimmerman (2016), “an accounting system is very much a part of the fabric that helps hold the organization together” (p.4).  Why? Because it provides the business with the information necessary to make sound business decisions.  Such decisions are, what is the business’ net worth, unusual expense categories and opportunities to reduce costs, how… Read More

Leadership and the Learning Organization Quite often people wonder what makes a good leader. When I was an employee working for the most part, for large and medium-sized companies, I was exposed to different management styles and personalities. Along the way, I realized that the concept of leadership can be complex, that individuals could be taught… Read More