Your Aging Accounts Payable Report Is Probably a Work of Fiction Stop nodding along to whatever financial report your bookkeeper hands you. If you have not scrutinized your list of ‘money owed’ in the last month, you are essentially running your business with a blindfold on. I argue that the ‘total amount due’ at the … Read more
You stare at the screen, squinting at the Retained Earnings line on your balance sheet, and a cold realization hits: it does not match the closing balance from December 31st. You feel a surge of panic, right? Stop. Most entrepreneurs treat their financial statements like a holy relic that should never change. You are wrong. … Read more
Your Cash Basis P&L is a Dangerous Financial Illusion If you look at your profit and loss statement and feel a sense of security because the bottom line is green, you are likely flirting with disaster. You think you’re winning because the bank account shows a surplus, but I’m here to tell you that your … Read more
The Dangerous Fiction of Negative Currency Your balance sheet claims you have negative $12,000 in your checking account. Unless you have discovered a rift in the space-time continuum where money can simultaneously exist and be absent, you are looking at a work of fiction. I see this every single week: business owners who treat their … Read more
Stop Dreaming and Start Measuring Why Your Ratios Are Failing You Stop pretending your revenue is the only thing that matters. Most entrepreneurs treat their financial statements like a dusty trophy on a shelf—something to look at once a year and feel vaguely nostalgic or embarrassed about. That is a mistake that costs millions. I … Read more
Your Business Budget is Probably a Work of Fiction Let’s stop pretending. Most small business owners treat their budget like a New Year’s resolution: something they declare with high spirits in January and quietly bury by March. I argue that a budget is not a restrictive cage designed to stifle your entrepreneurial spirit. It is … Read more
Most business owners treat their balance sheet like a dusty photo album. They think once the year is over, the pictures are set in stone. I am here to tell you that your Retained Earnings account is actually more like a chaotic time-travel movie. You go back and change one ‘minor’ expense in 2023, and … Read more
Why Your Accounts Payable Aging Report is the Ultimate Leverage for Supplier Negotiations Stop thinking of your Accounts Payable (AP) Aging report as a chore. Most entrepreneurs treat it like a report card from a class they hate—something to be glanced at and shoved into a drawer. I am here to tell you that this … Read more
Stop Bragging About Gross Profit While Your Net Income Is Dying You’re being lied to by your own dashboard. You see a gross profit margin that looks healthy—maybe even enviable—yet when the month ends, the actual cash available for distribution is a ghost. I argue that focusing on gross profit is the ultimate vanity trap … Read more
Stop Calling Debt a Tool and Start Admitting It Is a Chain Most entrepreneurs are drowning in advice that treats debt like a magic wand. It is not. Debt is a weight, and most of you are sinking while your accountants smile and point at a line item called equity. I argue that the traditional … Read more
