Year: 2022

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Note that equipment costs should be apportioned throughout the contract and not taken as a lump sum deduction. It can be reduced from the Unbilled Contract Receivable A/c while preparing the balance sheet. Often, a long-term contract can […]

Recognized costs will be actual costs if using the cost-to-cost method. Under PCM, only a portion of total contract income is recognized annually. For most working taxpayers, accounting for income is as simple as keeping a record of W2 documents they receive from their employer. If you run your own business, you must keep up […]

While it’s easier to predict expenses than sales, it’s essential to account for unexpected costs such as equipment failures, natural disasters, or sudden increases in supplier prices. Including a 10-15% contingency in your expense projections is advisable. With a proactive approach and by choosing the right procure-to-pay software platform, you can ensure your financial projections […]

The best products and services can flounder without a smart financial model, and that’s why financing is the primary cause of startup failure (not competition, business models, or founding teams). Beyond decision-making, your financial model reads like a portfolio to possible investors, showcasing your startup’s potential profitability and long-term viability. It can be worthwhile to […]