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 »