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The standard statements used by organizations for financial reporting are the balance sheet, the income statement, and the cash flow statement. While these have been the standard for many years, and do a good job of providing some information on an enterprise’s health and performance, they paint an incomplete picture on their own. There are tools at our disposal, however, that can help offer some context to the information given in these standard statements and from other sou

When operating a small organization, it can be difficult to stop and think about where you want it to go. Getting through the day-to-day can occupy all your thoughts, leaving no time to think about the future. Having said that, it pays to take some time to chart your path. The best organizations have a North Star to guide them on this path – a mission statement. A mission statement should be a declaration of why your organization exists – what it is uniquely qualified to offe

Years ago, when I was in business school, a small business management professor gave a lecture that I still remember to this day. The crux of the lecture was that the majority of problems in an organization can be sorted into three buckets: lack of revenue, lack of cash, or lack of systems. I think this is a useful framework for diagnosing the issues that may be facing your business, and they can be expressed in several ways: Lack of sales This one is fairly straightforward.

It is often said that “cash is king” in the corporate world, since it’s the lifeblood of any organization. Without cash, an enterprise will soon perish, as it can’t pay its critical suppliers, its employees, or meet its government remittance obligations. In small organizations, this phrase is especially true, since cash is often in short supply. When cash is tight, what can be done to preserve it for as long as possible? Fortunately, there are several strategies that be used