Author: bradhanks


Thoughts on growing a business, raising money, getting the word out,
and increasing profits. Plus, ZipBooks news!

  • What is inventory turnover and why is it important?

    Posted 3 years ago in
    by Brad Hanks

    Inventory turnover ratio is the cost a company pays to produce goods that have been sold in a 12-month period divided by the average inventory during that same year. It’s a popular metric because it measures a company’s ability to turn inventory, a non-cash asset, into cash. We talked about working capital as the current […]

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  • What is the working capital ratio?

    Posted 3 years ago in
    by Brad Hanks

    A working capital ratio is also sometimes referred to as the working capital or net working capital. The working capital ratio is defined as current assets minus current liabilities, so the working capital ratio is not really a ratio. It’s just simply a dollar amount. The working capital ratio can mean just the current ratio […]

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  • What is the working capital turnover ratio?

    Posted 3 years ago in
    by Brad Hanks

    A working capital turnover ratio, also referred to as “net sales over working capital”, or the net sales divided by working capital, is an indication of a company’s effectiveness in using working capital. Working capital is defined as the total amount of current assets minus the total amount of current liabilities. You should use the […]

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  • What Makes the Difference Between Success and Failure in Business Year One?

    Posted 3 years ago in Small Business Tips
    by Brad Hanks

    Many businesses fail within the first year, so we asked small business owners what makes the difference between business success and business failure in the first year. We got a lot of great responses, and we wanted to pass along their insights. The top eight answers are on the board. Work Through the Pain “I […]

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  • What is straight line depreciation?

    Posted 3 years ago in
    by Brad Hanks

    Straight line depreciation is the simplest way to calculate the depreciation expense line item as shown on the income statement. Without depreciation, the profitability of your business wouldn’t take into account the wear and tear your business has on your company’s assets, like vehicles and equipment. How do I calculate straight-line depreciation? We’ve broken down […]

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  • What Are Non-core Accounting Features?

    Posted 3 years ago in Bookkeeping
    by Brad Hanks

    Not all features in an accounting app fit neatly into what are traditionally considered to be “core accounting.” Because software allows us to add extra perks to anything we build, it’s difficult to know which features are convenient and which are “core,” or necessary to the program. What are Non-core Accounting Features? One way to look […]

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  • 60 Sites for Royalty-Free Images Free of Charge

    Posted 3 years ago in Small Business Tips
    by Brad Hanks

    So, your business has hit the ground running with a great product or service? Fantastic! Now you’re looking to make a bigger splash with your online presence. The best websites create ripple effects with attractive websites. Not quite a tidal wave, but something to make users relaxed as they use it. But what makes a […]

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  • Terms and Conditions & Your Business Website

    Posted 3 years ago in Small Business Tips
    by Brad Hanks

    In the highly-litigious society we live in today, forgetting to create a terms and conditions page is probably not a good idea. In almost any sort of business transaction, provider and consumer enter into a kind of contract. For instance, consider what happens when you buy something at the supermarket. The price listed on the […]

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  • Practicing Customer Empathy for Greater Profit

    Posted 3 years ago in Small Business Tips
    by Brad Hanks

    You may think to yourself, “I’ve already read an article about the importance of client communication. I know how important it is in business.” But unless customer communication comes naturally, it’s something you always have to keep working at. Even if you are a client whisperer, there’s always more to be learned from others’ experiences. At […]

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  • Cash vs Accrual Accounting: What’s the Difference?

    Posted 3 years ago in Bookkeeping
    by Brad Hanks

    As you set up your new business, one of the decisions you’ll need to make is whether to use the cash or the accrual method of accounting when creating your financial statements and filing your taxes. 

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