In the wake of the COVID-19 pandemic and escalating tensions with China, American companies are actively seeking alternatives to mitigate their supply chain risks and reduce dependence on Chinese manufacturing. Nearshoring, the process of relocating operations closer to home, has emerged as an explosive opportunity for American and Mexican companies to collaborate like never before.
Growth is great for companies, right? Not always. There are so many problems when experiencing business growth that can occur if the leadership is not careful. Besides the uncertainty of how long this growth period will last and how big the company will grow, companies loose focus on some basic key factors. This can include
Believe it or not, we deal with this issue of whether to use cash basis vs accrual basis accounting all the time. Many companies start from scratch with one person doing the accounting from home or a small office. Over time, their needs grow. It’s normal to see changes within the organization, especially when companies
See also: Free Cash Flow Definition How Growth Affects Cash Flow Why Use a 13-Week Cash Flow Report as a Management Tool? Why You Need to Have a 13-Week Cash Flow Report What is Cash Flow? Cash flow is a term describing the money into and out of a business. This includes all transactions that
Several years ago, I was consulting with a client in the staffing industry that was having a profitability problem: We have happy customers and seem to be doing well, but we just aren’t making more money… Sound familiar? After visiting with the frustrated owner of the business, I visited various departments to understand the people and
In a recent post, I talked about a conversation I had with our banker and the three questions she’d most like answers to. In case you missed it, her questions were… How are you feeling about your business and the local economy? What is the outlook for the rest of the year? What are you
See Also: Economic Indicators Consumer Price Index Supply and Demand Elasticity The Feds Beige Book Z-Score Model What is Inflation? What is inflation and what does it measure? Inflation measures the rate at which prices increase for consumer goods and services. Inflation also measures the rate at which a currency’s purchasing power declines. If consumer
See Also: Ten In-House Secrets for Reducing Your Company’s Legal Costs Board of Directors Benefits of an Advisory Board How to Form an Advisory Board Why is Intellectual Property Risk Everybody’s Problem Red Herring Definition The red herring definition, or preliminary prospectus, is a legal document that must be submitted to the SEC for approval
See Also: Accounting Principles Subsequent Events Business Segments Accounting Changes Probable Losses Definition Probable losses disclosure or the disclosure of loss contingencies is usually a concern for ongoing litigation proceedings or perhaps the discontinuance of an operation that will likely see a loss when it is sold. This form of probable accounting falls under the
See Also: Administration Expenses Outsourcing Predetermined Overhead Rate Fixed Costs Semi Variable Costs Overhead Expense Reduction Absorption Cost Accounting Overhead Definition The overhead definition is those ongoing expenses of running a business that do not directly relate to its core operations. It is ever present in the mind of accountants. The overhead definition includes the
See Also: Restructuring Expense ProForma Financial Statements Nonrecurring Items In accounting, report abnormal or infrequent gains or losses in the company’s annual report as nonrecurring items. They are rare events or activities that are not part of the company’s normal business operations. They may also be called extraordinary items. You must disclose the details of
See Also: Implementing Activity Based Costing Standard Costing System Process Costing Activity-based Costing (ABC) vs Traditional Costing Absorption vs Variable Costing Job Costing Definition Job costing is defined as a method of recording the costs of a manufacturing job, rather than process. With job costing systems, a project manager or accountant can keep track of
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