Sometimes it’s cheaper (or you have no choice) to pay for recurring expenses (such as insurance or software subscriptions annually rather than monthly.  Now this can mess up your cash flow a bit, but if you plan it right you can get both the savings and a smooth cash flow (see my Top 10 Tips to Save Money on your Software Subscriptions article). A question we often get asked is “how do I get my accounting system to spread the expense out over the year even though I pay once a year?” Here are the steps to do this in Xero (you can…

  It all depends on which world you’re in… What’s that you say? That doesn’t make sense to you? Well, it might if you think about it a little. When we experience cash shortages, our behavior changes, and sometimes it’s not always for the better. Let me introduce you to two different worlds: The Cost World The Throughput World The Cost World In the Cost World, we are very focused on costs. We look at every single expense and try to reduce it. We also tend to be obsessed with allocating all costs against the production of income.  But isn’t that a smart thing to do? After all, that…

  Instead of living in the “Cost World” try living in the “Throughput World.” If you are focused on the speed and amount of throughput in your business (while maintaining costs) you are assured of making more money now and in the future. Why is that? It’s because you are looking operationally and systematically at things you can do to improve throughput, which ALWAYS results in making more money. And if you really want to do a deep dive into this area, pick up a book called “The Goal” by Eliyahu Goldratt. It will completely change your perspective about business!!  In our next…

  It all depends on which world you’re in…   What’s that you say? That doesn’t make sense to you? Well, it might if you think about it a little. When we experience cash shortages, our behavior changes, and sometimes it’s not always for the better. Let me introduce you to two different worlds: The Cost World The Throughput World In the Cost World, we are very focused on costs. We look at every single expense and try to reduce it. That’s not a bad thing unless it affects the Throughput World. In the Throughput World, we are paying attention to the speed/pace of the business, and amount of…