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What Is Cash Flow? Metrics in a Minute

Quick definition: Cash flow measures the money—the actual dollars or pesos or yen—that is moving in and out of your bank accounts. Cash that you pay out is negative cash flow and cash that comes in to your business is positive cash flow. The details: To state the obvious, cash is critical to running a… Read more »

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What Are Direct Costs? Metrics in a Minute

Quick Definition of Direct Costs: Direct costs (also known as Costs of Goods Sold—COGS) are the costs that can be completely attributed to the production of a specific product or service. These costs include the cost of materials used to create the product and potentially any labor costs that are exclusively used to create the… Read more »

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What Is Operating Margin? Metrics in a Minute

Operating income is your company’s earnings before interest and tax expenses, also called EBIT. To calculate your operating income, just subtract your expenses (excluding taxes and interest) from your revenue.

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What is Net Profit? Metrics in a Minute

What is net profit? Net profit is the proverbial bottom line of your business. It is the money you make that doesn’t go back into expenses, taxes, and interest; the net profit that is left over. In business planning, you’ll find net profit listed in your financial statements, on both the cash flow and as… Read more »

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What is Cash Burn Rate? Metrics in a Minute

What is cash burn rate? Cash burn rate is the rate at which a company uses up its cash reserves or cash balance.  Essentially, it’s a measure of the net-negative cash flow. How fast are you burning through your cash reserves? Or is your cash moving the other direction, building up a healthy balance from… Read more »

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How to Run a Monthly Plan Review Meeting

Most people think that meetings are a waste of time. They’re right. Too many meetings are run poorly, have no real objective, and waste employees’ time—which kills productivity. There’s tons of advice and information on how to run better meetings and cut down on useless meetings that are making your organization move slower. I absolutely… Read more »

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The Small Business Owner’s Accounting Cheat Sheet

According to a study undertaken by the Small Business Administration, 28% of companies go bankrupt due to problems with the financial structure of the company. Many of these problems could be avoided by following good accounting practices. Keeping a record of your financial details IS important to the livelihood of your business. Not only will the correct… Read more »

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Want to know how your business is doing at a glance?

The LivePlan Scoreboard is a great way for small businesses to: Gain quick and accurate insights into sales, expenses, and cash flow Easily develop your budget and forecast sales Sync with your QuickBooks for real-time financial tracking Access your important numbers anytime from anywhere And ultimately, sleep better at night! Watch our short video on… Read more »