One of the most effective ways to drive your business toward profitability is by focusing on the break-even point. The break-even point is the point at which expenses and revenue are equal. Performing this calculation is a critical step for determining what sales volume is necessary to cover costs of operating the business. An efficient and effective way…
Small business owners need to monitor profitability trends to follow the course of profit over time. Monitoring the change in direction of profit from one period to the next is important for identifying areas that may require follow up attention. If a company's gross profit margin falls steadily over time, the business owner must address…
There are many different metrics you can use to monitor your business. Four of the most important ones use the information found on your company's balance sheet. Working capital - Indicates whether a company has enough short-term assets to cover its short-term debt.Debt to equity - Compares total liabilities to shareholders' equity to provide an…
Small businesses are increasingly using their financial data to make decisions about how to grow and manage their business. Now that Tableau has released its connector for QuickBooks Online (QBO), I am seeing an increase in demand for small business dashboards. I am excited to see this opportunity for small business owners and the accounting community. …
