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22 tagged with "Working Capital"

Manage working capital for business operations

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Why Profitable Businesses Run Out of Cash: The Cash Conversion Cycle, Explained
·mike

Why Profitable Businesses Run Out of Cash: The Cash Conversion Cycle, Explained

A worked guide to the cash conversion cycle and the three working-capital levers — DIO, DSO, and DPO — with industry benchmarks, the Amazon and Dell negative-CCC playbook, and the bookkeeping foundation small businesses need to shorten the gap.

cash-flow
working-capital
small-business
financial-ratios
+4
The Cash Conversion Cycle: How Small Businesses Free Cash Trapped in Operations
·mike

The Cash Conversion Cycle: How Small Businesses Free Cash Trapped in Operations

A practical walkthrough of the cash conversion cycle (DIO + DSO − DPO) for small businesses — how to calculate each component, what counts as a healthy CCC by industry, and the order to pull the three levers that free trapped working capital without breaking supplier or customer relationships.

working-capital
cash-flow
small-business
financial-ratios
+4
Staffing Agency Accounting: Bill Rate, Burden, and the Payroll-to-Payment Gap
·mike

Staffing Agency Accounting: Bill Rate, Burden, and the Payroll-to-Payment Gap

How staffing agencies should price bill rates above fully burdened pay rates, read gross margin by placement type, and book invoice factoring without hiding the spread. Includes burden components (FICA, FUTA, SUTA, workers' comp), a placement-aware chart of accounts, and the DSO math behind payroll funding gaps.

bookkeeping
small-business
payroll
cash-flow
+4
The Net Working Capital Peg and Post-Closing True-Up: How Business Sellers Lose Six Figures at Closing
·mike

The Net Working Capital Peg and Post-Closing True-Up: How Business Sellers Lose Six Figures at Closing

How the net working capital peg and post-closing true-up quietly transfer cash from sellers to buyers in mid-market M&A, and the monthly accrual-basis bookkeeping discipline that protects sale price.

mergers-and-acquisitions
working-capital
business-exit
business-valuation
+4
Quality of Earnings Reports: How Sellers Defend EBITDA, Survive Buyer Due Diligence, and Avoid Last-Minute Price Cuts
·mike

Quality of Earnings Reports: How Sellers Defend EBITDA, Survive Buyer Due Diligence, and Avoid Last-Minute Price Cuts

A Quality of Earnings (QoE) report decides whether a buyer accepts your EBITDA or re-trades the deal price. This guide breaks down the 12 add-backs buyers accept, the 8 they reject, and how the working capital peg quietly cuts seller proceeds at closing.

mergers-and-acquisitions
business-exit
business-valuation
working-capital
+3
Stablecoin Treasury for Small Businesses: How USDC Compares to Bank Sweeps and T-Bill Ladders
·mike

Stablecoin Treasury for Small Businesses: How USDC Compares to Bank Sweeps and T-Bill Ladders

A 2026 small-business comparison of bank sweep accounts, Treasury bill ladders, and USDC stablecoin yield — covering 4–12% APY ranges, the GENIUS Act reserve rules, the March 2023 USDC depeg, and the 1099-DA reporting obligations now in force.

treasury-management
stablecoins
usdc
small-business
+4
Building a Three-Statement Financial Model: How Small Business Owners Forecast Runway and Pressure-Test Growth Plans
·mike

Building a Three-Statement Financial Model: How Small Business Owners Forecast Runway and Pressure-Test Growth Plans

A practical guide for small business owners on building a three-statement financial model that links income statement, balance sheet, and cash flow into a single forecast — covering the eight-step build, runway calculation, and scenario testing.

financial-planning
forecasting
small-business
cash-flow
+3
Surety Bonds for Construction Contractors: Miller Act, SBA Guarantees, and the Books That Build Bonding Capacity
·mike

Surety Bonds for Construction Contractors: Miller Act, SBA Guarantees, and the Books That Build Bonding Capacity

How bid, performance, and payment bonds work in 2026 for small construction contractors — the Miller Act's $35K and $150K federal thresholds, the SBA's 80–90% guarantee covering contracts up to $14 million, and the working-capital and WIP discipline that decides which builders get bonded for the largest jobs.

construction
sba
small-business
bookkeeping
+4
Surety Bonds for Construction Contractors: How the Miller Act and SBA Guarantee Program Open Public Works to Small Builders
·mike

Surety Bonds for Construction Contractors: How the Miller Act and SBA Guarantee Program Open Public Works to Small Builders

Public construction contracts above the FAR $150,000 threshold require performance and payment bonds under the Miller Act, with state Little Miller Acts setting thresholds from $25,000 to $500,000. The SBA Surety Bond Guarantee Program—which guaranteed $10.6 billion in bonds for 2,200+ small businesses in FY2025—lets approved sureties write bonds for small contractors by absorbing 80–90% of loss risk.

construction
sba
small-business
contracts
+4
Treasury Bills for Business Cash Management: A 2026 T-Bill Ladder Guide
·mike

Treasury Bills for Business Cash Management: A 2026 T-Bill Ladder Guide

A practical 2026 playbook for small businesses using a Treasury-bill ladder to earn ~3.66% on idle operating cash, capture the state and local tax exemption on Treasury interest, and keep the bookkeeping clean.

treasury-management
small-business
cash-flow
banking
+4
AIA Pay Applications, Retainage, and WIP Schedules: How Construction Billing Ties to GAAP Revenue Recognition
·mike

AIA Pay Applications, Retainage, and WIP Schedules: How Construction Billing Ties to GAAP Revenue Recognition

AIA G702 and G703 pay applications, schedules of values, retainage, WIP schedules, and over/underbilling reconciliations are what tie construction billing to GAAP revenue recognition under ASC 606. Here is how each piece works, why a $312 line error can delay a $1.4M wire by 41 days, and the patterns that rattle sureties.

construction
revenue-recognition
job-costing
contracts
+4
Section 531 Accumulated Earnings Tax: Justifying C-Corp Retained Earnings Above the $250,000 Bright Line
·mike

Section 531 Accumulated Earnings Tax: Justifying C-Corp Retained Earnings Above the $250,000 Bright Line

Section 531 imposes a 20% accumulated earnings tax on C-corps that retain profits beyond a $250,000 credit ($150,000 for personal service firms) without specific, feasible plans. This guide explains the Bardahl working-capital formula, the Section 534 burden-of-proof statement, and the contemporaneous documentation that defends an accumulation in IRS audit.

c-corporation
tax-planning
tax-compliance
working-capital
+3
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