Everyone makes mistakes. I used to work with someone who said: “Show me a man who doesn’t make mistakes and I’ll show you a man who’s not doing anything.” While, true, this is no reason not to strive for perfection. …
I spend a fair amount of my time developing financial forecasts. As we approach year end, everyone is thinking about 2010. What are expected revenues? What changes will we make in our cost structure (either by necessity or choice)? What …
During the last couple of weeks, I’ve had the opportunity to review a few new income statements. What I saw was pretty typical . . . too many lines. Both had over 150 line items. It is clear that the …
Last month, I wrote about the many questions that are part of our business day. To some extent, an audit is all about asking and answering questions about the financials statements of a business and whether or not they accurately …
My work day is filled with questions. Depending upon the day, the client, and the specific role I am playing, determines whether I am the one asking the questions or answering them. But in either case, the underlying motivation is …
The normal process of approving accounts payable is for someone who actually received the goods or services to indicate that the invoice is both correct and that the goods or services were appropriately received. Often, this is often indicated by …
Last month, I wrote about “The Weakest Link” and referred to the old adage “a chain is only as strong as its weakest link”. I made the argument that the same holds true in any organization and that those weak …
Last month, I talked about the amount of risk that businesses take on through various initiatives. Today, I’d like to address a topic that people usually put into the risk category but which I think goes to the subject of …
All businesses take some amount of risk. Just opening the doors for the first time involves the risk of capital and labor. From then on, every business decision could be thought of as a risk reward trade-off. For most decisions, …
Truthful financial statements are a mirror. They are a reflection of what is happening in the business on a day to day basis. They reflect the decisions that management is making and the efficiency (or lack thereof) with which they …
