In the book “The Seven Signs of Ethical Collapse” by Marianne Jennings, JD., these seven signs are listed for spotting an organization’s ethics crisis that can bring down corporations like Enron and other businesses and nonprofits: Pressure to maintain the business numbers Culture of fear and silence A “bigger than life” CEO and awe-struck direct…
In our last blog, we talked about EBITDA and EBITDA margin, and stated that it is better to use both GAAP metrics and EBITDA to determine an organization’s financial health. Under the guidelines of GAAP (generally accepted accounting principles) requirements for corporate accounting, a profit margin is calculated using one of the three principles: gross…
What is EBITDA? EBITDA is the abbreviation for “Earnings Before Interest, Taxes, Depreciation and Amortization.” It is a measure of overall profitability of a business. How are EBITDA and EBITA margin calculated? EBITA = earnings before interest, taxes, depreciation, and amortization. EBITDA margin = EBITDA divided by total revenue. EBITDA and EBITDA margin help…
Internal fraud by employees in a workplace can be catastrophic to any company, it can be life-threatening to a small business with limited resources. In Part 1, we will discuss about employee theft and fraud detection. Next month in Part 2 we will address prevention issues. Who steals from employers? According to the shocking statistics…
Every day we get calls and receive emails from unknown sources and spammers. The following are not exhaustive lists of scams, as identity thieves are “evolving” with more sophisticated ways to breach cyber security. Here are the top 10 scams from Consumer Reports: Debt collection Fake government officials – IRS, Social Security, State Department, etc.…
Many people reported that they have received IRS impersonators’ calls, and sadly some fell victims of various scam schemes after being intimidated into paying a fabricated tax bill. Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals,…
In January 2019, I talked about financial and management pitfalls for growing small businesses at a professional networking group meeting. Last month in Part 1 of the two parts, we first focused on potential pitfalls related to lacking strategic goals and skills. Here in Part 2 I am listing some pitfalls related to leadership, internal…
Part 1 of 2: PITFALLS FOR A GROWING SMALL BUSINESS In January 2019, I talked about financial and management pitfalls for growing small businesses at a professional networking group meeting. Here in Part 1 of the two parts, we first focus on potential pitfalls related to lacking strategic goals and skills. In Part 2 next…
This is the last of three parts about cash flow problems and solutions for small businesses. In Parts 1 and Part 2, we discussed seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. 4.) Rein-in unnecessary spending and stay alert to potential…
This is the second of three blogs about cash flow problems and solutions, particularly relevant to startups, and also for small businesses. In Part 1, we discussed the first three of seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. Here in…