Financial Modeling - Murder By Numbers
March 28, 2008
To borrow a line from the Police, it might seem as easy as your a-b-c’s, but there’s a lot that goes into effective financial modeling. For the past 8 years with Practice Technologies, and going back some 10 years before that, financial modelling has always been central to the analysis I’ve relied upon to evaluate a business’ health or justify an investment in its growth. There are several important steps to follow in developing a financial model which will serve your objectives... Read more »
Become a Money Magnet
March 26, 2008
If you want more money in your life, you have to first be able to show that you can effectively manage whatever amount of money you’re currently earning. It is then and only then that you will be positioned in your life to earn a significantly higher income. You must first find a way to maximize the value of your current income. To do this, you must find a simple, effective, and consistent budgeting system that will help you take a serious look at your spending habits. Then you can figure... Read more »
Payroll Management The Tips On Doing It.
March 25, 2008
A significant piece of any business is keeping track of payroll. How much are you paying your people per month or per year? Without understanding this information, you will not comprehend the status of your ledgers. They are a summary of your finance. Begin by considering two main sections of payroll: accounting and administration. Payroll accounting means verify the amount of money that is withheld from earnings of your employees, for state and federal taxes. You will also need to prepare tax forms... Read more »
Audit Firm Rotation as a Good Governance Practice for Non Profit Organizations
March 25, 2008
The following item was reported in a recent American Institute of Certified Public Accountants communication: “The Exempt Organizations Division of the IRS had posted on the IRS web site a controversial document setting forth the Service’s view on what constitutes good governance practices for tax-exempt entities. Included in the document was the suggestion that audit firms be rotated on a regular basis, with five years as the suggested term. The Institute protested the inclusion of... Read more »
Getting Control of Your Finances with a Cash-Based Budgeting System
March 25, 2008
In this day and age, it is easier than ever to spend money - just whip out your debit card and buy whatever you want. The problem with these nearly frictionless transactions is that it is difficult to keep track of your money. When most people wrote checks for every day purposes, at least they had transactions recorded in their checkbook. Every time a check was written, the person writing the check would be forced to write down the amount and see how much money was left in his account (assuming the... Read more »
Budget Is Not A Bad Word
March 16, 2008
Sit amongst a group of friends and associates and mention the word budget, and suddenly everyone has somewhere else they need to be. Usually no one wants to talk about budgets, no one wants to think about budgets, and no one wants to follow a budget. However, when looked at with open eyes a budget is actually a fantastic thing. Here are three reasons why budget may become your favorite word: Reason #1: A budget puts you in control of your money instead of your money controlling you. What did you... Read more »
How To Stop Arguments About Money
March 15, 2008
Have you ever had an argument with your partner about money? Has he or she spent more than they should? Have you over-spent and tried to cover it up to avoid a fight? I have developed a system to stop the arguments over money. I have been married for nearly 14 years and we never ever fight about money. I will provide some simple steps for you to take to stop the arguments over money permanently but before I get to that I will make a disclaimer. If you are deep in financial trouble, go and seek... Read more »
Your Home Business Tax Deductions
March 11, 2008
If you operate your own home business, then you are probably aware that there a few drawbacks to being self-employed, just as there are a few drawbacks to any major decision you do in your life. Being an entrepreneur and self employed often means that you lose some workplace benefits, such as group insurance, sick leave, paid vacations, etc. However, the government does provide solace balance to those who have an entrepreneurial spirit, and this solace comes in the form of tax breaks, because you... Read more »
Your Home Business Budget Foundation
March 11, 2008
Why a Budget is Important. Let it be your guide from beginning to end. Starting your own home business is a very tricky proposition. Starting your own enterprise is exciting, but it is also inherently full of risk. Enter discipline. Unless you get yourself going on the right foot, then the chances of achieving success are very small. Conversely, as long as you have the right foundation, and keep working on that foundation, success is almost an automatic thing. It is vital that you run your home... Read more »
Circularity in Spreadsheets - Things to Consider
March 9, 2008
Chains of reasoning or calculations arise where one statement depends on another, which in turn depends on another. In evaluating a circular chain of reasoning, the calculations are form a circle. In some cases circularity generates an error. In others, circularity in spreadsheets is used intentionally to solve critical issues. Although it may be easy to get answers from a spreadsheet, it may be difficult to get the right answers when circularity in spreadsheets is involved. When you deal with... Read more »
