Cash is the life blood that runs a business. If it’s mismanaged, it’s highly likely that the company will experience pain. Unfortunately, employees are often
Browsing Category
Finances
What’s your company worth?
What is an innovation services firm worth? I had to answer this question when we started broadening the ownership of my company beyond its co-founders.
Creating financial leverage in a service firm
Innovation service companies, like Atomic Object, sell their time and talents to help clients grow revenue or expand a market through the creation of software.
Compensation games distort the whole economy?
Might compensation games be distorting the entire US economy? I wrote last week about my belief that using money to motivate people was a bad
Four easy changes improved our P&L statement
The profit and loss (P&L) or income statement is critical for understanding your business. Every quarter we close the books, analyze the P&L, compare against
Accounting for calendar distortions in your financial results
Update: 20 July 2017 Per an email request, here’s the current version of the spreadsheet we use to make the quarterly accrual adjustments for revenue
Profitability varies by firm size
Curiosity drove me to learn more about how software development firms of different sizes vary financially, and whether or not there have been recent changes
Profit margin matters more than profit
Profit alone is not a good metric for tracking your innovation services company’s performance. Profit is of course what you can spend or re-invest in
Mitigating risk with financial buffers
Being good at software development requires you to estimate responsibly and accurately. One element of a responsible estimate is knowing how to buffer estimates for
Arranging your income statement (P&L organization)
The Income Statement (aka Profit & Loss Statement or simply P&L) is critical for understanding the financial performance of your company from an operational standpoint.