I came from a corporate world where debt was expected and even planned. And that corporate world taught me it was okay to maintain a certain debt to capital ratio at all times. And for my larger clients, that works. Or rather, we make this manageable. In smaller businesses, especially with revenues under $10 million, […]
Several years ago, I added a new client to my portfolio that had a Wall Street flare to it. I found myself studying multiple P&L’s where EBITDA kept popping up. I asked the owners what EBITDA meant to them and why it was prominently displayed in their internal reporting. “I don’t know,” said one of […]
I continue to be bothered about a theft I read about in my small local paper several months ago. In brief, a court clerk admitted to forgery and embezzlement amounting to more than $16,000 in a small Missouri town. As a former KPMG alum, I know very well this theft could have been detected at […]
Looking for a way to shave some dollars off your line of credit interest? This is not for the faint-hearted, but it’s effective. Additionally, you’ll need a pretty decent finance person at the helm to pull this off. Oh yes, not sure what LIBOR is? Then this CFO hack is not for you (yet).
When I started my CFO and controllership practice back in 2001, I was in for a rude awakening in the world of small business finance. In larger sized businesses, we have the capital structure nailed down, which includes debt financing. But in the the small business world, here’s what I quickly learned when I started […]
A few days ago, I received an e-mail from a growing online dashboard provider, and the topic was monitoring your current ratio. What boggled my mind was that their success indicators ranged from 1.5 to 3. There were no additional comments about how certain results could be misleading.