Giersch Milwaukee Bookkeeping for Business
A Tradition of Excellence.

Free Management Accounting Articles

Financial Accounting and Managerial Accounting

We start this series with a look at the difference between the two most basic types of accounting: financial a…

The Small Business Owner’s Guide to the Balance Sheet

In our work with small business owners and nonprofit directors, we find that many of them have a good grasp of…

The Small Business Owner’s Guide to the Family Business

According to Merriam Webster, stewardship is the conducting, supervising, or managing of something; especially…

The Small Enterprise Guide to Management

When we hear the word management we think of many different things – human resources, hierarchy, “…

Top 5 important financial concepts for your business

Milwaukee small business owners should understand these essential There is no end to what you could know …

Bookkeeper vs. Accountant vs. CPA vs. Controller vs. CFO

What is the difference between a bookkeeper and an accountant? What can a CPA do that an accountant can't? Und…

5 factors determining optimal small business cash reserves

How much cash reserve should a small business have? For companies with strong cash positions, their question i…

How reviewing your business financial statements pays off

Reveal the truth about your business in three basic financial statements Have you ever wished you co…

How do I know if I'm pricing my construction jobs right?

Understand the difference between markup & margin to improve your job costing Our bookkeeping & …

Five Questions You Must Answer If You’re Going to Grow Your Business

Small businesses often have a hard time breaking through the next barrier, whether it be the $1M, $5M or $10M …

What is depreciation and how does it impact my business?

Depreciation is a process of recoding the cost of a major purchase over time.  It is a result of the fact…

How does goodwill impact my small business?

When we consider what a business is worth, whether to buy or sell, there are many factors that determine value…

The Importance of a Financial Model for Forecasting

Many companies develop an annual budget based on their Profit and Loss Statement for the coming year. While th…

How the Right Bookkeeper can Help Your Small Business Take Off

It’s Review Time, but How Do I Review My Bookkeeper? For the owner operated businesses under $10M that w…

What is a business model and what should my business model be?

Your business model is way in which your company turns revenue into profit.  Your business model is best …

Internal Controls

Why do Internal Controls Matter? Firstly, internal controls are put in place to protect company assets and red…

More About the Importance of Strong Financial Data

Small businesses and grassroots nonprofits tend to suffer from three recurring headaches: Not Enough Revenue …

Cash vs. Accrual Accounting For Non-Profits: Which is Right for Your Organization?

While many commentators are suggesting that nonprofits need to adopt accrual accounting, not every Executive D…

The Small Business Monthly Financial Reporting Package

Managing your company's accounting can be intimidating. As an owner, you desire to focus your time on growing …

Liquidity and Solvency Ratios

It is crucial to focus on the use of liquidity and solvency ratios in managing available cash in your business…

Cost Decision Making for Managers

For a small business owner, knowing the cost characteristics of the company’s products and services is e…

Gross Margin Analysis

Maintaining a profitable business involves more than just selling products and services to increase revenues. …

Key Performance Indicators

Identifying & Utilizing KPI to Grow Your Business Imagine driving a car without a dashboard showing engine…

Tax Planning

Rather than viewing taxes as an annual event, year-round preparation can reduce stress. This begins with organ…

Tax Planning: Which Organization Structure is Best?

Our resource is designed to create an orderly review of the various aspects of a business. This allows managem…

Business Cycle Preparation

Business Cycles A business cycle is the economic fluctuation that happens over periods of time.  A busine…

Surviving the S Curve

Why do most start-up businesses fail within the first five years of opening?  The fact that they do is we…

Finishing Strong: Time to Buy or Sell

This resource will discuss the reasons around whether it is time to buy or sell a company. We will furthe…

Year-End Maximization

When entering the fourth quarter, it is important to focus on finishing this year well. While many urgent…

Stewardship and the Family Business

Introduction According to Miriam Webster, stewardship is the conducting, supervising, or managing of something…

The Cash Flow Budget Process

A Cash Flow Budget Example for Small Business Owners The basic principles for budgeting can be found in our r…

The Budget Process

It is especially vital that each owner is aware of cash needs and designs best and worst-case budget scenarios…

Using the Balanced Scorecard as a Budgeting Tool

Many business owners assume that the budget process is simple and can be easily estimated.  However, it i…

Slimming Down the Budget: Understanding Cost Cutting

Today’s continued economic situation continues to apply pressure on many businesses. In establishing the…

Proactive, Not Reactive: The Importance of a Budget

As small business owners know, it is hard to plan ahead. Budgeting is one tool to help forecast your financial…

Taxation in the Budget Process

The Giersch Group recommends that companies using a calendar year should develop a budget. The key is to build…

Year End

In this resource, we focus on items to remember as you wrap up the current year and the finalization of the bu…

Strengthening Key Business Relationships

As the year comes to a close it is important to review the relationships that made your company successful in …

Accessing Capital

Small business owners contribute heavily to the creation of jobs and expansion of our economy. According to th…

Forecasting Revenues

Forecasting revenues is important for all business owners in order to manage cash flow and respond to changing…

Product Mix

Some questions you may want to ask when reflecting on the product mix include: What items are currently a part…

Pricing Strategy in the Frozen Ocean

One of the most difficult parts of selling any product or service is finding the right price that will both gi…

Gross Margin Concepts for Professional Service Firms

The key component of product mix is the gross margin of the differing products. In this resource, we consider …

How to Improve the Efficiency of your Cash Flow Cycle

Master the basics of cash flow management & grow your business Entrepreneurs know that “cash is king…

Collection Process

Spending or investing cash can be a fun exercise. Collecting cash, however, is often an undesirable activity f…

How to determine your company's net cash position

  Reducing the road blocks to getting paid The current economic situation causes small businesses to foc…

Cash vs. Accrual Accounting - Why Your Checkbook Isn’t Enough

Accounting can be overwhelming for many small business owners. Driving revenues, increasing cash in the bank, …

Technology Systems to Maximize Customer Relationships

Although networking should be a priority for you and your business, it can produce its own problems.  An …

Inventory Management

In today’s economy, every company is looking for an edge. Knowing how much inventory to hold and how to …

Risk Management

For the purposes of this resource, the Giersch Group teamed with Mazey, Reed & Brey Insurance Agency …

Systems Review

This resource focuses on reviewing the development and implementation of business systems which are desig…

Technology Systems to Maximize Operations

This resource examines various technology systems for entrepreneurs and small to midsize businesses to conside…

Company Operating Policies and Procedures

One of the easiest ways to make your organization more efficient is having clear, centralized documents outlin…

Tax Strategy Tips: Understanding Distributions, Dividends & Compensation

The Giersch Group recommends that companies review their tax strategies for the upcoming year.  Many tax …

3 Small Business Tax Planning Essentials

Every year, the tax code is updated to reflect changes made during the previous year. Knowing these changes en…

Calculating & Paying Quarterly Estimated Taxes for a Small Business

Knowing your tax obligations is essential to running a successful firm. Taxes come in many forms and it can be…

Pricing Strategy

Pricing strategy helps your business maximize net income. In this resource, the Giersch Group discusses the st…

Product Mix and Profit and Loss Statement

The Giersch Group has found that many small businesses struggle with the use of financial statements to a…

Creating Timely, Accurate Financial Statements

The Giersch Group views financial statements as foundational for properly operating a business.  A c…

Cost Accounting and Break-Even Analysis

Financial reports are an under-utilized tool for small business owners, but they are the key to understanding…

Strategic Planning

It is important to focus on developing a longer term strategy for your company. However, in order to develop a…

Strategic Planning & Propensity of Risk Avoidance

At the Giersch Group, we believe that a systematic approach to strategic planning lays the foundation for good…

Capital Structure Strategies for the Generations

We believe small business owners need to understand the capital structure of their company and the tools that …

Strategic Planning Implementation

Developing a strategy is important but a strategy is only effective when it is implemented. If your company st…

Organization Chart Utilization for Growth

Whether you are a start-up company or an organization with 100 employees, the organization chart is a tool tha…

Solving the Problem of “Wearing Too Many Hats”: Delegation and the Leveraged Model

The growth of any enterprise is dependent upon two factors: revenue and capacity. Driving enough revenue to cr…

Quotes About Money

“An investment in knowledge pays the best interest.” - Benjamin Franklin “No man can become …

Best Practices for Tracking Employee Time for Professional Firms

Professional service firms know that it is critical track your employee’s time, but why? The correlation…

How Do I Create a Turnaround Plan for my Business?

When your company is struggling, everything counts and nothing is neutral. Time can be on your side, but it is…

Handling Employee Theft and Fraud

I caught my long time employee stealing. How should I handle it? When you’re in a tough situation such a…

Preventing Employee Theft

As a small business owner, you know how crucial it is to protect your assets; however, employee theft is a rea…

Why Fire Trucks Always Back In

Have you ever noticed that fire trucks always back into the fire hall? Why don’t they just pull into the…

How to Increase the Value of your Business by 71%

How much did your home increase in value last year?  Depending on where you live, it may have gone up by …

Six Ways to Profit from your Vacation

Summer is here, and although it may seem strange, now may be the perfect time to increase the value of your co…

5 Ways to Attract the Attention of An Acquirer

In any negotiation, being the person who makes the first move usually puts you at a slight disadvantage. The f…

10 Things That Make Your Business More Valuable Than That of Your Industry Peers

The value of your company is partly determined by your industry. For example, cloud-based software companies a…

One Hidden Thing That Drives Your Company’s Value

You already know that your company’s revenue and profits play a big role in how much your business is wo…

A Blood Pressure Test for Your Business

When was the last time you had your blood pressure tested? Taking your blood pressure is one of the first thin…

The Danger of Market Timing the Sale of Your Business

The other day I was speaking with a successful CEO in his fifties who runs a heating and air conditioning comp…

What Your Birth Certificate Says About Your Exit Plan

In our experience, your age has a big effect on your attitude towards your business and how you feel about one…

Seven Powerful Ratios to Start Tracking Now

Doctors in the developing world measure their progress not by the aggregate number of children who die in chil…

Caution: Do Not Poke the Giant

On June 1, 2011, both Floyd’s Coffee Shops in Portland, Oregon were busier than usual. The regulars were…

5 "Strategic" Ways to Sell Your Company

Did you see the news that Facebook has recently acquired Internet messaging service WhatsApp for $19 billion? …

How To Get a Big Company Multiple For Your Business

Big public companies trade at a significant premium over small businesses in the same industry because investo…

Did Microsoft Overpay for LinkedIn?

Microsoft’s recent $26.2 billion acquisition of LinkedIn provides an illustrative example of a strategic…

5 Lessons From Home Depot’s Acquisition of Blinds.com

Jay Steinfeld built Blinds.com into a $100 million e-tailer before selling out to Home Depot. Here are five th…

Why Startups Stall

Have you ever wondered why startup companies stop growing? Sometimes they run out of potential customers to se…

How To Lure A Giant Like Facebook Into Buying Your Company

A great business is bought, not sold, so, if you look too eager to sell your business, you’ll be negotia…

Learning From Acquisitions That Fall Apart

John McCann sold The Bolt Supply House to Lawson Products (NASDAQ: LAWS) at the end of 2017. McCann’s st…

The Build vs. Buy Equation

If you’re wondering what your business might be worth to an acquirer, there is a simple calculation you …

Which Is Better, a Financial Buyer or a Strategic Buyer?

If you decide to sell your business to an outside acquirer, you’re going to have to decide between a fin…

Exiting Tips From One Of The Top 40 Under 40

Wind Mobile founder Anthony Lacavera has started 12 businesses, six of which he has exited. His exits have ran…

9 Warning Signs You’re a Hub-and-Spoke Owner

If you were to draw a picture that visually represents your role in your business, what would it look like? Ar…

Where to Start When Your Growth Stops

Why would two companies in the same industry, with the same financial performance, command vastly differe…

Four Ways to Protect Your Turf

Warren Buffett famously invests in businesses that have what he calls a protective “moat” around t…

Prevention is Better Than Cure

To grow a valuable business – one you can sell – you need to set up your company so that it is no …

Planning to Sell? How to answer THE most important question

Many business owners believe the act of selling their business is similar to passing the baton in a 400-meter …

The C-word and 7 Others to Avoid at Work

The majority of businesses in America today started out as service companies. If you want to own a web design …

Does Your Business Have Curb Appeal?

Let’s say you’re in the market for buying a house and you go to view one that looks appealing in t…

Is Now the Time To Sell Your Business?

Have you been thinking about selling your business but just can’t decide if now is the best time?  …

7 Things To Do Before Signing a Letter of Intent

You may be years away from selling your business, but it’s never too early to understand what the proces…

8 Questions You’ll Be Asked When Selling Your Business

One of the most intimidating aspects of selling your business can be facing the barrage of questions duri…

The Hierarchy of Recurring Revenue: How to Make Your Company Irresistible to Potential Buyers

One of the biggest factors in determining the value of your company is the extent to which an acquirer can see…

Is Your Business You-Proof?

Whether you’re planning to sell your company sometime soon or sometime in the future; now is the time to…

Four Traps to Avoid When an Acquirer Comes Calling

You may be eager to sell your business, and happy to have an acquirer at your doorstep, but what’s it li…

Avoiding the Superstar Sales Rep Trap

For your business to be valuable – and sellable one day – you need some way to generate sales afte…

The Curator: How to Thrive as a Middleman

Being a middleman (or woman) has become risky business.  When was the last time you used a travel agent? …

Have you fallen into The Mile Wide Trap?

If your company’s revenue has stalled after a period of rapid growth, you may have fallen into The Mile …

Justification for Your Next Vacation

A recent survey by The Value Builder Score found companies that would perform well without their owner for a p…

The Hidden Goal of the Smartest Business Owners

What are your business goals for the year? If you’re like most owners, you have a profit goal you want t…

Do you have a billion dollar business hiding inside your company?

Asking customers to pay to join a special group of your best patrons can increase your revenue, encourage cust…

Growth vs. Value: not all revenue is created equally

When you look ahead to next year, will your growth come from selling more to your existing customers or findin…

6 Little Things that Make a Big Difference to the Value of Your Company

With the Sochi Olympic Games taking place this month, it is interesting to reflect back on some of the big eve…

Will your business be more valuable this time next year?

For many, January is a time of rebirth and resolutions. It’s a month to reflect on last year’s ach…

Do You Have a Job or Own a Business?

The ultimate test of your business can be found in a simple question: would someone want to buy your company? …

Running Your Company with the Exit Strategy in Mind

At the Giersch Group, we believe that a systematic approach to strategic planning lays the foundation for good…

Performance Reviews

This resource is performance reviews.  This resource is to help small businesses develop and apply e…

Human Resources: Recruiting, Compensating and Evaluating Your Greatest Asset

Any organization that brings together different people to work toward a common goal faces the challenge of coo…

Compensation Planning

This resource focuses on the development of a compensation plan that matches the strategy of your company. Top…

Employee Benefits: Small Business Approaches

The benefits package comes under scrutiny prior to pay cuts. While cutting benefits may not be a preferable ch…

Avoid the Death Spiral: Investing in Your Employees and Increasing the Bottom Line

This resource is designed to highlight the relationship between investment in employees and growing the compan…

Market Positioning

We want to encourage you to use periods of lighter business activity for strategic planning, laying the f…

Maximizing Opportunities for Market Differentiation

The SWOT analysis aids in understanding the market position of your company. In previous resources, we fo…

Market Position: Your Threats Relative to Your Competition

In evaluating the market position of your company, understand your business through the utilization of a SWOT …

Market Position: Company Strengths and Unique Market Position

Why do some people eat at the same restaurant time after time, visit the same salon, or are adamant about usin…

Customer Surveys

Customer perception is one component of understanding how your products and services fit in the market place. …

The Marketing Cycle: An Overview

Marketing is often thought of as a static, one way attempt to increase sales. Super bowl commercials, highway …

Marketing vs. Sales

The difference between marketing and sales has been hard to define for many business owners.  Businesses …

Building Your Brand

A strong brand helps a company in five different ways: clarifies the company’s value proposition, aids i…

Cultivating Your Customers

Nonprofit organizations have much to learn from for-profit organizations. However, one area where nonprofits e…

Marketing Strategies for a New Year

January begins a new year. At the Giersch Group we recommend that clients start the year by looking at their m…

Marketing Strategies

January begins the new year, the new budget, and the need for revenue growth. Therefore marketing presents its…

Push & Pull Marketing

Foremost in the minds of business owners are how they will increase revenues in the current economic environme…

Web-Marketing

CTR.  Conversion rates.  Ad impressions.  SEO.  Bouncing.  Cloaking.  FTP. …

Focusing Your Marketing Strategy

As businesses enter into the New Year, it is essential to have a plan. Part of this plan is having a budget. O…

Tools to Make the MIDBI Calendar Successful

As we enter another year, nonprofits should take the time to implement a fundraising strategy. Your organizati…

Board Assessment

The board of directors is a critical component of a nonprofit organization. Because new members join the board…

Forming and Using Committees Effectively

A board of directors is an integral part of every nonprofit, and the work of the board can be enhanced by the …

Five Steps to Board Building

Board Building involves targeting, identifying, and recruiting ideal members to assist in the governance and e…

Tips for Running an Effective Board Meeting

The role of the Executive Director and the Board of Directors is a complementary relationship.  That bein…

Advisory Boards

If managed correctly, advisory boards are a great way to improve your nonprofit. For this resource w…

Duties of a Nonprofit Board of Directors

Understanding the IRS rules for your organization can be a daunting task for many nonprofits. To assist each o…

Short-term Planning and the Annual Report

Annual Strategic Planning Short-term planning is essential to all organizations and businesses as it gives pra…

Strategic Planning for Nonprofit Organizations

As a nonprofit organization grows, changes program focus or has staff turnover, they often experience one of f…

Considerations for Nonprofit Collaboration

Nonprofit organizations are often under intense pressure to stretch their resources. Collaboration is one pote…

Donations: A Nonprofit’s Roles and Responsibilities

The majority of donors do not contribute to an organization solely because they will receive a tax deduction.&…

Minimizing Risk with Nonprofit Insurance

Protecting your organization is a critical part of your nonprofit management.  Nonprofit insurance minimi…

Staying Competitive with Accurate, Timely Financials

The rising competition for donated funds has forced charities to increase the level of professionalism they de…

Increase your Donor Base with an Annual Report

The non-profit leader’s momentum of “doing” is interrupted by a heavy dose of “reporti…

Nonprofit Tax Risks

Nonprofits are looking for ways to increase their income. While there are many ways to augment charitable dona…

Nonprofit Financial Ratios

As the funding environment continues to remain competitive, donors and stakeholders increasingly want nonprofi…

Collaboration of Financial Systems for Nonprofits

A nonprofit is typically established by an individual or a group of individuals who see a need and have a visi…

Resource Allocation

What are the standards? A common question we hear among Executive Directors is “what percentage of total…

The Right Relationship: The Executive Director, the Chairman of the Board, and the Board of Directors

Whether you are a business or a nonprofit, proper corporate governance is essential to successfully executing …

Build a Board

Overview This resource focuses on the Executive of a nonprofit organization. Executives are tasked with a…

The Nonprofit Super Hero: Founder’s Syndrome

Many organizations are created from a passion or a recognized need in society. Founders realize these needs an…

Selecting Professional Services

Every nonprofit regardless of its size, location or mission faces the same administrative minutia, and it has …

Perpetuating Your Mission: Succession Planning for Nonprofits

Over the last decade, much has been written about the changes that are beginning to affect the economy with th…

The Well-Rounded Executive

To be a well-rounded executive, it is important to understand all of the various aspects of running an organiz…

From Excel Spreadsheet to Donor Database

Donor cultivation is the key to sustainability for any nonprofit organization. One of the best ways to maximiz…

Identifying a Major Donor for Cultivation

Throughout the nonprofit sector, major donors are a key focus. “Cultivation” of these donors, as i…

Donor Reporting

Nonprofit executives put a tremendous amount of time and energy into raising money. They spend an equal or gre…

Mining for Gold: Analyzing Your Donor Database

In previous resources, we have discussed the importance of establishing and maintaining a donor data…

Expanding Your Donor Network

As much as nonprofit organizations try to retain donors, there are always a number who will drop off the donor…

Donor Fatigue: The Key To Keeping Donors

Donors are the lifeblood to any nonprofit organization. Just as much as your nonprofit needs passionate people…

Cultivating Major Donors Through Smaller Dinner Events

Personal connections and interactions are essential when soliciting and establishing a base of donors for your…

How to Budget for the Grey Areas: Marketing, New Programming and Facility Expansion

A successful nonprofit will have budgets for operating and capital expenditures, and the budget should work wi…

Budgeting Based on Fundraising Performance

The budget in a nonprofit organization is a key but often overlooked management tool. This resource will …

Essential Groundwork to Create and Control Your Annual Budget

Nonprofit boards have a fiduciary duty to effectively manage the assets of their organization. Approving the b…

The Annual Budget

As the calendar year draws to a close, non-profit executives are focused on end of the year giving. While gran…

Mission Statement and Mission Fidelity

Everyone has a mission statement, and therefore, everyone agrees that a mission statement is important, right?…

Mission Drift

As a new year begins, nonprofit organizations have high expectations and a vision for growth. Each year passin…

From Mission to a Compelling Case for Support

Who benefits from your work and why is it important to the community?  What makes you different than othe…

Creating a Mission Culture

Your organization’s mission statement is short enough to memorize.  The statement is posted on ever…

Measuring Your Mission

Every nonprofit has a mission statement that defines the organization’s reason for existence, and this s…

Collaboration and Merger Options for Nonprofits

The number of nonprofits in the United States continues to grow at a more rapid pace than business. While this…

What Do You Do When You’ve Accomplished Your Mission?

Does the dissolution of a non-profit mean that in some way the organization has failed, or can it mean the org…

Marketing for Nonprofit Organizations

Marketing is something that every nonprofit knows they should do. The challenge is knowing what marketing invo…

Program Benchmarking

Thirty years ago, there was this belief in the nonprofit industry that “you can’t measure charity&…

Your Greatest Asset

The unique value of a nonprofit organization lies in its people. Nonprofit executives and employees bring to t…

Organizational Structure

An organizational chart is a powerful tool that should be frequently studied in order to better understand how…

Management Accounting Services for Small Business Owners & Nonprofit Managers

When we hear the word accounting we think of many different things – bookkeepers, CPAs, taxes, audits, etc. While small business owners have a healthy respect for the importance of accounting, they can be unsure of how all the pieces fit together. There is often a lack of clarity as to what they need in the way of accounting for their own business, how much money to spend on it, how much time to focus on it and even what to do with the information provided by it.

To “do an accounting” signifies that you are keeping track of something and in most cases, accounting refers to efforts to keep track of the most important element of your business – the money. To the inexperienced, this often proves to be much harder than it sounds.

The Giersch Group has produced a series of papers on the topic of accounting for small business owners, family-run businesses and nonprofit managers to bring clarity and guidance on this important topic. You can also visit our bookkeeping FAQ page or contact the professionals at Milwaukee's best small business bookkeeping firm for more information. We're happy to answer your questions or schedule a free consultation for your business.

Get a free consultation for your business to learn how the Giersch Group can help your bottom line.

Currently happening on Instagram:

Contact Us Contact Us to Receive Financial Advice Choose financial peace of mind today.