You face many risks as the owner of a closely held business. These include market risks, like changing customer preferences and tastes that could affect demand for your products or services; competitive risks, such as the entry of new competitors into your market area or industry; and regulatory risks,...
We’ve all heard the saying, “Don’t put all your eggs in one basket.” It is often quoted when discussing the importance of diversifying an investment portfolio so it isn’t vulnerable to wild price fluctuations by just one or a handful of stocks. This saying is also appropriate when it...
Buying another business is one way to grow your company. Growth by acquisition can lead to the realization of synergies between the merged businesses as well as rapid, exponential growth that could take years to achieve organically. One of the biggest keys to a successful business acquisition is performing...
Pricing is one of the most critical tasks that any successful business has to get right. Price your products and services too low and you won’t earn a high enough margin to meet your expenses and earn a profit. Price them too high and you might not sell enough...
As difficult as it might be to envision someone else at the helm of your business, the fact is nobody can run a business forever. Eventually there will come a day when it’s time for you to exit your company. This may be because you’re ready to retire,...
The procure-to-pay process followed by many middle-market companies today is anything but efficient. Typically, the process starts with a requisition and then proceeds to a purchase order, invoice and eventually a payment, either by check or electronically using the Automated Clearing House (ACH). This process may be justified for the purchase...
Since the principles of modern accounting were first established early in the 20th century, the record-to-report model has been the dominant accounting process. This approach manages the accounting cycle as a repeatable, end-to-end process that includes all steps starting with the booking of transactions and going all the way through...
When they first start a new business, entrepreneurs often create a centralized organizational structure. The authority in such a structure is top-down, which makes it easy for the owner and his or her key managers to make important decisions and keep tight control over all aspects of the organization....
The 21st century is sometimes referred to as the Digital Age due to the fact that so much of what we do is done digitally. This includes everything from listening to music and watching television to accessing our news, information and entertainment on handheld mobile devices like smart phones...
Any company that has gone through a merger and acquisition (M&A) understands the complexity involved in accounting for divestitures. Covered under ASC 805 (formerly SFAS 141), accounting for divestitures — along with accounting for business combinations, discontinued operations, impairments, intangibles and segment reporting — poses many challenges for businesses and...