Preparing & Reviewing An Accounts Receivable Aging Report

It doesn’t take long in the business lifecycle for small business owners to get acquainted with their accounts receivable (AR) aging reports. AR aging reports offer a simple way for

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Drivers of LVM and Net Profit

Service firms know better than most how important labor efficiency is to profitability. A study by U.S. Bank found that 82% of business failures were attributable to problems with cash

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LVM’s Impact on Net Profit and Contribution Margin

Small service businesses need to prioritize profitability. Research shows that typical small service companies struggle to be profitable. Ninety percent of all service and manufacturing businesses (gross sales >$700,000) operate

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Profit Margin Drivers for a Service Business

Many service businesses are small, privately owned firms with one owner or a few partners. While many aspire to grow, profitability is more critical because: The paychecks of the owners

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How SmartBooks Improved Our Labor Value Multiple by 33%

As a quick recap, Labor Value Multiple is simply a measure of profitability where you take the revenue for a client and divide that by the total cost that it takes to deliver service for that client.

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The Labor Value Multiple and Why It’s the Most Important Metric for Service Businesses

One question I get asked a lot is: what is the single most important financial metric I should focus on? Well, if you own or manage a service organization, that metric is Labor Value Multiple, or LVM.

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The LTV:CAC Ratio – Evaluating Customer Acquisition Cost

Last week I showed you how to calculate customer acquisition cost in real dollars. While this is an important metric for you to understand about your business, what's even more useful is understanding how that CAC, customer acquisition cost, relates to your LTV, or lifetime value of your customers.

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How to Calculate Customer Acquisition Cost

Hi. Today we're going to be talking about customer acquisition cost. As the head of marketing for SmartBooks, it's my job both to bring in new customers to SmartBooks and to do so at a cost effective price.

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Working Remotely: How to Set Your Employees, and Your Business, Up for Success

According to surveys of American workers, 43 percent of employees work from home some of the time, with a full three percent working remotely at least half the time. In

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Profit Growth: How to Set, Track and Achieve your Goals

Every company sets financial goals, but are they basing them on the right metrics? We’ve seen too many businesses struggle with these issues. It’s not a coincidence. Few companies understand which strategies

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