Recently there has been significant attention in the media devoted to the rise of entrepreneurship in East Africa. All over the world business leaders are beginning to realize that many African nations—including Tanzania, Burundi, Rwanda, Uganda, Sudan, Ethiopia, Eritrea, Djibouti, … Read More
In business, there are two kinds of costs: direct costs and indirect costs. What is Direct Cost A direct cost is the cost of producing goods or services, including raw materials and labor. Direct costs are only reported once the … Read More
Cash is like air; profit is like food. You need cash all the time, but you can survive, for a while, without profit. All employees must understand the difference between cash and profit to make the best decisions for your … Read More
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
Gross margin is a finance term that seems to be defined differently by every company. Gross Margin Defined Gross margin is gross profit expressed as a percentage of sales. Gross profit is the money earned from a sale minus the … Read More
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
Income statement is a common term, but are you aware of everything it comprises? 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 publish … Read More
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
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
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