This is the second installment in my four-part series on fraud. In the first installment I presented the Fraud Triangle. All three elements must be present for fraud to occur: pressure, opportunity and rationalization. In this installment I cover Internal Fraud. That is, fraud committed by employees rather than outsiders. Fraud committed by outsiders, External […]
The Fraud Triangle
In my career I’ve been exposed to fraud only a few times. My impression used to be that fraud is relatively rare. Maybe it was or maybe my experience wasn’t representative, but it seems that fraud has become a lot more common. Technology has certainly made it easier to steal. Fortunately, technology has made it […]
The Art of Listening
I believe that listening is one of the most important things we can do. Note I said “can” do because most people don’t do it or don’t do it well. I’m talking here about active, engaged listening. Not listening while distracted, multi-tasking, hungry or preoccupied. And not listening, just waiting for a pause, so that […]
QuickBooks as the Industry Standard
QuickBooks has established itself as the standard accounting software for small (and not-so-small) businesses. A few years ago, the Journal of Accounting, the official publication of the American Institute of CPAs, did a survey on small business accounting softwares. The result was that QuickBooks has a 90% market share, Peachtree has a 9% market share […]
Functions of a Professional Manager
I’ve written previously about the difficult transition from doer to manager; the toughest transition in business in my mind. And rarely do we become a pure manager in small to medium-sized businesses. Instead, we usually retain some “doing” while most of our time is spent “managing.” Still, we can all learn to be better managers […]
Financial Holy Trinity
When I approach a business with financial challenges, and most have financial challenges, I use a triage approach I call “The Financial Holy Trinity.” Really, it is this approach that informs almost everything I do in a business. My belief is that there short, medium and long-term financial concerns in a business. The Financial Holy […]
SRO Budgeting and SMART Goals
It is the time of year when most companies are doing their budgeting for the next year. This can be a frustrating and time consuming exercise. It is also important. Does every company need a budget? I don’t think so. Smaller companies, where the owner is very close to the transactions, may not need a […]
Do You Have a 2020 Vision?
That title line isn’t about your eyesight. It doesn’t ask whether you have 20-20 vision. It asks whether you have A Vision for the year 2020; five years from now. While predicting the future is always tough, even three years out, how can one predict ten years from now? It is difficult, I agree, especially […]
The Hardest Transition in Business: Going from Doer to Manager
I believe the hardest transition in business is the one from Doer to Manager. When a person starts a business, let’s face it, they need to do everything or almost everything. As the business grows, the entrepreneur needs to shed some of his or her duties. They need to delegate. And that is a difficult […]
Financial Ratio Analysis
Ratio Analysis is the most common tool for analyzing financial statements and what they can tell us about a business. Ratio Analysis starts with the business’s (presumably) accurate financial statements. Those statements provide an accounting picture of the operations (for a period) and the financial position (at a point in time). While financial statements are […]