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Accounting

Why Is Margin Analysis Important?

Teri Scott, CPA
June 17, 2021

What is a Gross Profit Margin? Your profit margin is impacted by so many factors, such as price, volume, and even sales region. So knowing your way round your profit margins can give you valuable insights into understanding what exactly is driving your margins, which will help in making those bigger and trickier business…

CPG Companies, Startups

What Makes a Good Distributor?

Lorne Noble
June 14, 2021

What is a Distributor? Most consumer goods (CPG) brands and companies will start off using self-distribution because it’s the most cost effective option at the time. But as your business grows and your inventory expands, self-distribution is no longer a viable option. And that’s when you’ll likely start looking for a distributor. Distribution is…

Accounting

How to Handle Customer Deductions and Chargebacks

Teri Scott, CPA
May 18, 2021

What are Chargeback, Trade Spending, and Deduction Fees? One of the potential profit drains for consumer packaged goods (CPG) companies are the trade spending and deduction fees that tend to come with selling their products. They usually stem from working with wholesale distributors, like leading US distributors KeHE and UNFI, and can be tricky…

Accounting

Is It Time to Hire an AR Liaison?

Teri Scott, CPA
May 4, 2021

When Asking for Payment Becomes a Challenge Running a business can sometimes feel like juggling. There are quite a few balls to keep in the air and each of them needs your attention before they can be thrown back into the thick of things. The challenge of juggling all of these balls (i.e. various…

Finance

Need a Cash Injection? Consider AR Financing

Lorne Noble
April 21, 2021

Alternative Financing Options In an ideal world, it would be super simple for every business to seek and receive financing whenever they’re in need of funds! But the financing landscape is a little more complex than that and often financing is based on industry, business history, credit scores, access to collateral, and a number…

Accounting

Top 6 Differences in Nonprofit Accounting Versus For-Profit

Teri Scott, CPA
April 14, 2021

We See You, World Changers In our many years as entrepreneurs, we’ve had the opportunity to meet so many incredible startups with mind-blowing vision, ready to change the world, but they lacked a good handle on their finances which created barriers for them to be the change they wished to see in the world….

Finance, Metrics

What Can Profitability Ratios Say About Your Business?

Lorne Noble
March 24, 2021

Ratios to the Rescue Previously, as part of our company metric series, we explored liquidity ratios. This week we’re diving into profitability and profitability ratios. Calculating your company’s profitability ratios can be a great way for a business owner to measure efficiency, success, and performance in the two key areas of margins and returns….

CPG Companies, Startups

What Makes a Good CPG Broker?

Lorne Noble
March 9, 2021

Becoming a High Growth CPG Brand So you’ve started a consumer packaged goods (CPG) brand and you’ve had some initial success with your product, but you want more. You want to figure out how to reach that high growth success and become THE product everyone is buying and talking about. But how do you…

Finance

3 Easy Actions to Simplify Your Revenue Growth

Lorne Noble
February 16, 2021

Keep it Simple Business owners have a tendency to quickly get caught up in the minutiae of running their business leading them to overcomplicate things like their strategy for business growth. We include ourselves in this group of business owners who have lost sight of the bigger picture at one point or another –…

Finance

Accurate Financial Forecasting: A Case for the 3-Statement Financial Model

Lorne Noble
February 1, 2021

Cash-Based Financial Models Your profit and loss statement (P&L or your income statement) can only show one view of your company’s financial picture. And this is often the view many people tend to use when forecasting their cash flow. However, it is dangerous to only consider this one view for sophisticated financial forecasting! If…

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