#small-business
Financial management strategies and tools for small business owners
Diluted EPS assumes every option, warrant, and convertible note becomes shares; it is the worst-case number — value the company on it, not on basic EPS.
Skipped cumulative preferred dividends stack up as arrears that must clear before common holders see a dollar — yet stay a footnote until declared.
The degree of financial leverage equals EBIT divided by EBT: a DFL of 2 turns a 10% operating dip into a 20% earnings fall.
GAAP books probable losses now but gains only when realized — ASC 450 keeps lawsuits, refunds and earn-outs off your statements until the money is certain.
HoneyBook wins on proposal-to-paid speed, Dubsado on workflow automation, Bonsai on contracts plus tax — pick by billing model, team size, and setup budget.
Muni interest is federally tax-free under Section 103, but AMT and the de minimis discount rule can tax it. GO vs. revenue bonds and TEY math, explained.
Profitability index is the present value of inflows over the initial investment — fund projects above 1.0, highest PI first when the budget is capped.
A purchase order becomes binding when the supplier accepts it — by signature or shipment. What to include, blanket POs, and 2- vs 3-way matching.
The IRS lets accrual-basis employers deduct unpaid year-end bonuses only if the liability is fixed by December 31 and paid by March 15.
Your BOM sets your product cost, purchasing plan, and inventory relief — a stale one silently eats margin. Single-level vs. multilevel, EBOM vs. MBOM.
All four depreciation methods expense the same total — they differ only in timing. Compare formulas, salvage-value handling, and when each fits.
Dynamic pricing moves prices with demand, inventory, and competitors — set cost floors, price the market not the shopper, and reconcile every payout.
