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An increasing current ratio because of a cash infusion (think PPP loans) inflates your current ratio. It is not increasing because your company is becoming … Read more
“We didn’t get our financials for three months and now we’re in a cashflow crunch.” Current Ratio is a measure of liquidity, i.e. how easily … Read more
“The minimum gross margin for commission is 40%. We pay a commission on any project with a 40% or higher gross margin.” The is the rule … Read more
An interesting conversation with my plumber. I had some plumbing work that needed to be done at my house. My long-time plumber left the company and … Read more
First, I used $100 an hour to get your attention. In many areas of the country technicians are already earning $60 an hour or more. And … Read more
Almost everyone hates annual performance reviews – the managers doing the reviews and the employees who are the subject of the review. Why? Most reviews are … Read more
Most of you have associated the acronym, ROI, with return on investment. ROI also means return on inactivity. What does it cost you if you … Read more
Whatever the cost is, debit warranty cost in cost of goods sold and credit warranty reserve on your balance sheet. Then put the dollar value of … Read more
“Our warranty costs are eating our lunch!” “What’s going on?” “There’s a recall from the manufacturer and we have to install a new part. The manufacturer … Read more
If you pay an employee for 2,080 hours a year (not including overtime) then you have to account for the number of hours that are … Read more
