What is a Customer Deposit When a customer provides cash in advance as a condition of the sale. Typically before the product or service is delivered, but some time before it is produced or available. Accounting for customer deposits is Read more…
How to calculate CAGR in Excel. Investopedia has a great definition of CAGR: Compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, Read more…
Building a financial model for a startup doesn’t have to be overly complicated. If you break it down into the 5 key components it will be much more manageable. The 5 Key Components are: Startup expenses These are the expenses Read more…
What to do when you know there are critical control deficiencies in your business I was working for a global business in a regional finance leadership role. Internal Audit rotates their work so that each entity is reviewed every three Read more…
Should they be expensed as incurred on the income statement or capitalized on the balance sheet and amortized? One popular answer is that digital marketing expenses are a form of advertising and should be expensed as incurred. However, if we Read more…
Sales tax is complicated, more complicated than it needs to be. How about a harmonized sales tax whereby every jurisdiction in the country collects the same rate on the same goods and services? If states want to reallocate among jurisdictions Read more…
I think the Agile Alliance does a really good job defining Minimum Viable Product which defines it as that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the Read more…
Avoid the tendency to over-analyze and explain 100% of the result. Everyone does it… Google the phrase “primarily due to, partially offset by” you will see 10s of millions of search results, many of them from amazing, reputable companies. Folks, Read more…
One rule of thumb when hiring employees in an early-stage startup that the starting salary is 30% below “market” for a similar role with an established company. To compensate for the lower salary, options are offered. The first option grant Read more…
When designing a chart of accounts, there are several competing priorities that you need to manage: you need a way to maintain proper accounting records that are compliant with the accounting and tax regulations you need a way to quickly Read more…