Independent Contractor (1099) vs Employee (W-2)

Is it better to classify a worker as an independent contractor or employee?

There are pros and cons to both, but the decision should be based on the rules set by the IRS.

It is important to examine the relationship between the business and the wor...

Have you ever wondered if your business is as profitable as it could be?

It’s hard to know when you only have your historical financial reports to compare to.

The quickest way to answer the question is to calculate the profitability gap.

What is a Profitability Gap?

A profitability gap is the ...

Owners are quick to tell me they are very profitable.

But, later in the conversation the owners share the rest of the story when they say things like…

• I don’t pay myself a salary…yet.
• I sometimes struggle to pay my bills on time.
• I use my line of credit to make payroll.
• I cannot afford to h
...

When our employees make mistakes, it is easy to brush off the small investment it takes to make the customer happy. But, have you stopped to calculate how much the mistake really cost your business?

Watch this video to see how much you need to sell to breakeven on the mistake. 

Bottom Line

• Co...

Would you rather…

Sell $500,000 after 20% discount

Or

Sell $300,000 after 5% discount?

Check out this video to see the powerful effect discounts have on sales, profit and cash flow. 

Would you rather sell more or save more money? Check out this video to learn how each activity boosts the bottom line in your business.

Spoiler alert - financially stable service companies require managing all three - sales, profit and cash flow. 

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10% Net Profit is the New...

Did you know the customers listed in the 1-30 day column on the Accounts Receivable Aging Summary are actually 1-30 days past due? The common misconception is the report reflects the number of days since you provided the service and issued the invoice. 

It is important to note the phrase “past...

It is easy to start a company and learn how to sale your services and deliver what you promised. But, do you know the other 4 steps of a healthy business cycle?

Watch this video to learn how to complete the entire business cycle. Spoiler alert...you may be missing the business finance side of the...

In this video, you’ll learn how the following affect net profit and cash flow:

0: 25      Business income taxes for “pass-through” entities

1:44        Loan payments – interest and principal

2:57        Replenish cash reserves

3:37        Replace old assets to maintain current sales level

4:3...

If you are not a numbers person, business financial literacy can be daunting.

Here’s a little secret…you use numbers every day.

In fact, this morning, you may have weighed yourself.

Today’s number is 200. By itself, the number 200 lbs does not mean a lot, but when you compare it to last week...

It’s tempting to look at the $106,200 balance and assume everything will fine. This is more than enough to pay the bills on time. The problem is customers do not always pay on time, if ever.

If your AR report looks like this, then you are in good shape. This is an example of a healthy AR report.

I don’t know. We’ve never met, but I will help you answer the question. Here are 3 signs your AR balance is too high:

1. You are not able to pay your bills on time.

• This may sound like Captain Obvious but it is common for owners to assume they need to sell more. When the cash flow problem is h
...