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What? … Manage Return on Equity?
Return on Equity, or ROE, is a widely recognized measure of a company’s performance. Even though some senior executives’ compensation is based on ROE or a similar measure, many regard it as an...
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How Much is Enough?
How do you decide which projects to invest in? Some companies look at the expected profit as a percentage of expected revenue. This approach, however, does not take into account the size of the...
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ROI versus IRR … In a Nutshell
Both the CEO and the CFO of a large company told me that ROI and IRR are the same thing. They’re not. Interestingly, both executives’ annual bonus was determined by how their ROI compared with other...
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Overhead… Who Cares?
You probably couldn’t stop your accountants from allocating overhead to your operating profit centers, even if you tried. I’m not a business historian, but somewhere along the line, accountants...
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A Part-Time CFO
At certain stages of growth, many companies find themselves in the awkward situation of needing the services of an experienced CFO, but feel they can’t afford to hire one. Yes, a good CFO with the...
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Thinking About Year-End? … You Should Be
Year-end is almost upon us again. Now is the time to get your house in order – it will take a huge amount of stress off the closing process a couple of months from now. Being truly ready for the...
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Cap Rate … What is it?
For every commercial real estate opportunity, someone is going to tell you the Cap Rate. We all know that the Cap Rate, when divided into Net Operating Income (NOI) gives you the purchase price. We...
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Losing Perspective
The story is that if you drop a frog into a pot of boiling water, it will jump out immediately. If you put it into a pot of cool water, however, then turn on the heat, the frog won’t notice the...
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The Quick Fix? … Or the Whole Enchilada?
Managers need information; that’s one of the laws of nature. The uses of information are endless, and managers constantly come up with new needs for reports, analyses and procedures. But information...
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Buying a House … Residence vs Rental Property
A common question my clients ask is “Should I buy a house?” A logical extension of the question is “Should I live in the house, or would I be better off renting it out?” Actually, the question is more...
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YOUR S CORPORATION – A CHECK-UP
In my experience, a lot of people don’t pay enough attention to their Subchapter S Corporations until tax time, when it’s sometimes too late to correct errors or oversights. You formed the S Corp...
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