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The return on assets calculator is created to help you determine if you are wisely using the assets that are controlled by your business. The calculation is made in several steps. The first step is to determine your average inventory for the past year. Enter in the ending inventory for each of the past 12 months. The second step is to total your operating expenses for a 12 month period. Do that in the "Annual Operating Expenses" section. The third section is where you input the amount of assets at year end. After that you input your cash sales and charge sales. Charge sales are not bank card sales, but are from 'house' or corporate charge accounts. The input of 'cost of goods sold' should be from a year end profit and loss statement. Miscellaneous business income is often for income from investments, dividends from buying groups, or rent collected for space that is provided to other businesses. |
MAY 2024
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With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.
Small Business
The May Small Business Advisory is titled "Planning for a successful accountant" and is appropriate for many with the April 15 tax deadline having passed.
Did you work with your accountant? Or, did you just give them a bunch of papers and wait to receive a completed tax return?
Successfully working with an accountant requires a partnership. This month's Small Business Advisory gives suggestions of how to make this happen in 2024.
Small Business
We see that many small business owners have too much of a focus on the "top line" of their income statement.
Increasing revenue is great, but it is not a cure all for any challenges your business is facing. And sometimes, incresing revenue can create a challenge.
Who is your customer? Some small businesses have no focus. Their customer is whoever calls or walks in the door.
And some small businesses have determined which customers, in sufficient numbers, they should spend their efforts to attract.
The article of the month shares an old Southern rhyming couplet about business; "The bertter you niche, the more you get rich."
Lean Startup by Eric Reis is our suggested book for May.
As the title suggests, the reader of the book would be someone that is starting their business. However, we see more value than just that.
Perhaps you have been in business for many years. We think this book could give insight to items, and methods, that a small business owner should think about with their business today.
