Break-even analysis allows you to determine the business revenue necessary to pay all your expenses. Break-even analysis is a simple and powerful financial-management technique related to business profits. At the break-even point, a business doesn’t make any money, but it also doesn’t lose any … [Read more...] about Calculating a Business’s Break-Even Points
Articles
Accrual Basis Accounting vs. Cash Basis Accounting
Business owners and managers sometimes ask the accrual basis accounting vs. cash basis accounting question. Or, restated in a slightly different form: Should a firm be using accrual basis accounting or cash basis accounting? Cash Basis Accounting Defined Cash basis accounting counts revenue when … [Read more...] about Accrual Basis Accounting vs. Cash Basis Accounting
Forming a Limited Liability Company: What, Why, and How
We want to provide a birds-eye view of what a limited liability company is, why you may want to form one, and then how you form one. Our experience is that many small business owners (especially new small business owners) benefit from knowing this stuff. And in many cases, real estate investors … [Read more...] about Forming a Limited Liability Company: What, Why, and How
How Health Savings Accounts (HSAs) Save You Taxes
Since the beginning of 2004, taxpayers have had a new tax savings tool called Health Savings Accounts, or HSAs. And these accounts are worth looking at seriously. In a nutshell, HSAs work like this: You buy a special type of health insurance called a High Deductible Health Plan. (This special … [Read more...] about How Health Savings Accounts (HSAs) Save You Taxes
How to Write a Business Plan
One of the more common subjects that new business owners ask about is “how to write a business plan?” To help you with this task, let me first clarify what business people usually mean when they use the term business plan and then provide some suggestions and point you to resources that you can use … [Read more...] about How to Write a Business Plan
Financial Planning for a Windfall in Wealth
So I’ve lived in this community for, gosh, nearly three decades. In that time, as a CPA serving thousands of business owners and affluent taxpayers, I’ve seen a pattern repeat itself time and time again when someone receives a big financial windfall. A giant bump in income from Microsoft or … [Read more...] about Financial Planning for a Windfall in Wealth