The Ludic Fallacy

Watch Out for the Ludic Fallacy: Don’t Let it Spoil Your Business Simulation Game Experience Written by Nikolai from Income|Outcome Humans have been modeling life with games since at least the First Egyptian Dynasty and have been using what they … Read More »

What is Gross Margin?

Today’s word involves your profit—sort of. “Gross margin” is one of those tricky terms defined differently by every business. But at a basic level, “gross profit” is the money earned from a sale minus the direct costs of that sale … Read More »

What is a Statement of Cash Flow?

There are three main pillars of financial reporting. We’ve already discussed income statements and balance sheets. But what is a statement of cash flow? The broad purpose of a statement of cash flow is to show where cash in your business … Read More »

What is an Income Statement?

“Income statement” is a common term, but are you aware of everything that comprises it? An income statement is a history book of the sales, costs, and expenses over a given period of time. Publicly traded companies are required to … Read More »

What is a Balance Sheet?

What is a balance sheet? The Balance Sheet is a statement of what you have (in the business) and where the funding came from.  It adds together all the assets in the business (“what you have”), and adds together all … Read More »

Growing Beyond the Founder

The statistics on the earnings of entrepreneurs in the U.S. might give pause to anyone thinking of starting a business. An article by Bloomberg Business revealed that U.S. entrepreneurs make 35% less than employees. Recently, we discussed the statistic with … Read More »

Days Sales Outstanding

What is Days Sales Outstanding?

Depending on your position in your company, you might see a lot of sales revenue coming into the organization. But when will the the company actually able to use it? Today’s finance phrase can help you find out. Days sales outstanding … Read More »

Why Finance is the Language of Business | Income Outcome

Why Finance is the Language of Business

There is an astonishing phenomenon that occurs in business. It happens when different departments get together to talk about finance. It is this: People sometimes use different words to refer to the same thing… Operating Income (or Operating Profit) is … Read More »