Financials

Margin management attempts to manage risk by evaluating both cost and revenue simultaneously rather than as individual units of risks.  Margin management involves the management of revenue, expenses and taxes all simultaneously. Looking at each factor in isolation does not always yield the most margin effective decision. For example, you could have a strategy that raises revenue by $5, cost $3 to obtain and after-tax effect will leave you with $2.55. By thinking

As a Certified Public Accountant I often encounter the question should I become a s-corporation or LLC? What are the advantages of LLC? Even though I understand why people ask the LLC or S Corp question, I realize the information is based on incomplete knowledge. You can be a straight s-corporation or a LLC taxed as a s-corporation. Which one is most beneficial depends on your unique situation. S Corporation

Your financial system is the most important key to the puzzle to unlock your financial freedom. Marketing is the lifeblood of your business and with great marketing you can make great money. However, without a handle on your finances you can still end up broke. Finance Figure 1: Financial Freedom Plan Your financial freedom system begins with having a financial freedom map. Your financial system is made up of: Your financial

Income statement rich but balance sheet poor People are so accustomed to boasting about how much they make but I think that is irrelevant. What is more important is how much of what you make do you get to keep. In other words you could be income statement rich but balance sheet poor. Income statement The income statement is the financial statement that tells you what is left over after

The Asset versus the Transactional Model The transactional model focuses on making money now while the asset model is more concerned with not just money earned now but can also produce income in the future. One of the characteristics of an asset is the ability to generate future revenue. To operate using the asset model, you need at least 3 systems as shown in the diagram below: [caption id="" align="alignnone"