See Also: Gross Profit Margin Analysis Retail Markup Chart of Accounts (COA) Margin Percentage Calculation Markup Percentage Calculation Margin vs Markup Differences Is there a difference between margin vs markup? Absolutely. More and more in today’s environment, these two terms are being used interchangeably to mean gross margin, but that misunderstanding may be the menace
A few weeks ago, I started another series of our Financial Leadership Workshop, and in Day 1, we discuss that paradigm shift that needs to take place to go from accounting to financial leadership. So, I compiled all the quotes from all of my curriculum that make me think… How can I lead my company differently? What can I
We often discuss budgeting in our firm, and I often write about budgeting because it is such an important topic in any company. As a consulting firm, we deal with this issue at almost every client. Let’s rehash some basics… Why is budgeting important? As properly stated by Ron Real (the author of 13 ½ Strategies
Budgeting garners a variety of reactions. Some are annoyed that nobody ever wants to look at them or follow them. Others don’t know how to read them – so they just ignore them. Then there are some that just follow the mantra – everything is going to be alright. But we have seen some budgeting
Ron Rael, author of 13 ½ Strategic Ways of Winning the Budgeting Wars, once said that, “To achieve success in anything, you need two ingredients: a target to aim for and a way to measure your progress towards it.” Budgeting is all about achieving success in business. When you improve the budget process, you are
Do you need to take an umbrella to work today? Without a trusty weather app or friendly meteorologist, it would be difficult to know the answer. Fortunately, you probably have one of these tools to help you make an informed decision. The CFO/Controller is the meteorologist for the business. It’s your job to help the company decide when, and if,
What is a Zero Based Budget? A zero-based budget (ZBB) requires all expenses to be justified each period. Essentially, a zero based budget is when you create a budget from scratch each period. Each period, reevaluate and justify all expenses in terms of the company’s overall strategic objectives. Distinguish the zero-based budget from the traditional budget.
See Also: ProForma Financial Statements Cost Center Weighted Average Cost of Capital (WACC) Standard Costing System Activity Based Costing vs Traditional Costing Percent-of-Sales Method The percent-of-sales method is a technique for forecasting financial data. When forecasting financial data for strategic planning, budgeting, or for developing pro forma financial statements, analysts can use the percent-of-sales method
See Also: ProForma Financial Statements Cost Center Weighted Average Cost of Capital (WACC) Percent of Sales Method Standard Costing System Comparison Analysis Budgeting vs Forecasting Forecasting in Accounting Forecasting in accounting refers to the process of using current and historic cost data to predict future costs. Forecasting is important for planning purposes – it is necessary to
See Also: Accrual Based Accounting The Future of the Accounting Workforce Absorption vs Variable Costing Implementing Activity Based Costing Process Costing Management Accounting Cost Accounting Definition The common cost accounting definition is accounting which seeks to create then compare a budget to the actual cost of doing business. In cost accounting, budgeting aids in decision making
See Also: Capital Budgeting Methods Capital Budgeting Phases The phases of the capital budgeting process include the following: Description of the need or opportunity Identification of alternatives Evaluation of the options and the relevant cash flows of each Selection of best alternative Conducting a post-completion audit of the projects. Examples To identify capital projects, refer
See Also: Capital Budgeting Phases Cost of Capital Discount Rates NPV Net Present Value Cost of Capital Funding Capital Budgeting Methods Definition Most small to medium sized companies have no idea how to approach capital investments. They treat it as if it were an operating budget decision rather than a long-term, strategic decision that will
JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES
Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®
August 7-10th, 2023
CONNECT WITH STRATEGIC CFO™
