Debt Repayments Create Nasty Tax Surprises

Most business owners pay down debt every chance they get because it feels good, it give them competitive advantage and it increases the health of their business. However, debt payments are not tax deductible and business owners can get a nasty tax bill even though they have no cash on hand because the money was used to pay down debt.

Obsolete Inventory

Not all inventory sells or makes it to the production line. Plans and markets change and that means some inventory items become obsolete. Dealing with obsolete items properly improves the accuracy of accounting related metrics and ratios. But more important to CEO's and business owners handling obsolete inventory effectively can actually improve efficiency and production while increasing the health of the balance sheet.

The Connection (between balance sheet and income statement)

The balance sheet measures the financial condition of a business at a distinct point in time where the income statement reports financial performance over a period of time. The short video explains the difference between the two and how they are tied together.

The Balance Sheet

Too many business owners don’t understand the balance sheet. That’s because most explanations start with terms like assets, liabilities and equity. I break it down in very simple terms to give you a solid foundation for just what a balance sheet does and what it means.