Stock Write-offs Explained: Turning Losses into Gains in 3 Simple Steps
The thought of writing off unsold stock is enough to make any business owner or manager nervous. Whether it’s worth $100,000 or $1,000, it’s a guaranteed loss to your profit and loss that packs an emotional punch. It’s easy to let old stock accumulate. We’ve all been there – the shelves filled with unsold goods, […]
EBITDA Explained: Cash Profit, Risks, and Real Business Insights
What is EBITDA? Simply put: Earnings Before Interest, Tax, Depreciation & Amortisation. It will often be referred to as the ‘cash profit’ of a business as it reflects the core financial performance of a business, excluding non-cash items and costs related to financing or tax. Components of EBITDA Tangible vs Intangible Assets Defined Both amortisation […]
Understanding Productivity Factor
What is Productivity Factor? In simple terms, your Productivity Factor measures how much gross profit your business generates for every $1 spent on administration wages and associated costs. The formula is straightforward: Productivity Factor = Gross Profit Dollars ÷ Admin Wages (plus super and related costs) Gross Profit Dollars = Revenue – Cost of Goods Sold (COGS) […]
Perpetual & Periodic Stock: Pros, Cons & Choosing the Right Approach
Inventory is one of the biggest and most misunderstood assets on a business’s balance sheet. Get it right, and you’ll have clarity and confidence to manage your margins, cash flow, and profitability with precision. Get it wrong, and your financial reports quickly become misleading- with or without you even realising. Two key systems dominate inventory: […]
Linear vs Stepped Expenses Explained
Most businesses think about costs too simply. They split them into fixed and variable, direct and overhead. That’s fine for your accountant’s ledger — but it’s not enough if you actually run a business. If you want to control costs like a real CFO, you need to understand how they behave as your business grows.That’s […]
Why Trader Joe’s Pays C.O.D — And Why Smart Businesses Should Care
If you’ve ever travelled through the US, you’ve probably stumbled into a Trader Joe’s. It’s the cult-status grocery chain with Hawaiian shirts, quirky product labels, and a legion of die-hard fans. But behind the fun branding is one of the most quietly brilliant financial strategies in modern retail: Trader Joe’s pays its suppliers C.O.D — […]
Deloitte Says Performance Reviews Are a Waste of Time — Here’s Why They’re Right
You might’ve seen the recent Deloitte study making waves across LinkedIn. They report, traditional performance reviews aren’t worth the time, cost, or energy they demand. It’s a big statement from one of the world’s leading consultancies, and it’s sparked plenty of debate. But I think Deloitte’s right. Not because reviews can’t work, but because most businesses […]
Business Lessons from Exercise: Boosting Intensity and Managing Losses
It doesn’t sound like the place to learn business lessons from but you’d be surprised at the value that can be gained from sweating on an exercise bike or chasing a golf ball around the course. I’m not saying I’m about to become the next fitness influencer or the next Tiger Woods. However, what I […]
Perpetual vs Periodic Stock: Which Gives You Better Financial Accuracy?
One of the most common sources of confusion in financial reporting comes from how businesses value and manage their stock (or inventory). If you’ve ever wondered why your profit and loss doesn’t seem to align with your balance sheet — or why your cost of goods sold (COGS) looks inconsistent — it could be because […]
When to Say Yes or No to Client Requests
Every business owner faces it: a client asks for “just a little extra.” It’s not in the contract. It’s not budgeted. But it sounds small enough that you hesitate. Do you hold the line and charge for it? Or do you give it away to build goodwill? This balancing act is one of the most […]