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EBITDA and Other Scary Words

A Financial Poise column dedicated to the reality that if you don’t understand your numbers, you don’t understand your business.


EBITDA and Other Scary Words

Scary Word(s) No. 12 – “The Deferreds”

April 6, 2017

Deferred Revenue, Deferred Rent, Deferred Compensation and Deferred Tax   by Yesenia Cardona, Charles Saydek and William Ryan   Sounds like a movie title!  But, what are “The Deferreds?” By definition, the word “defer” means “to put off or postpone.”  How exactly does this apply to the accounting for your business? Well, “The Deferreds” refer to the deferred […]

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Scary Word(s) No. 11 – Debt, Collateral, Covenants, Guarantees and More

March 3, 2017

Understand the definitions that distinguish your banking terms…before you sign the dotted line.     by Yesenia Cardona, Charles Saydek and William Ryan   If you ever read (and I mean read, not just signed) a bank loan or revolving credit agreement, then you know the document can be a little overwhelming. Whenever first 20 pages of a […]

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Scary Word(s) No. 10 – Commitments and Contingencies

January 31, 2017

by Yesenia Cardona, Charles Saydek and William Ryan   In our last installment, we learned all about Accrued Expenses: that accrued expenses are necessary when your business incurs costs, but your vendor has not yet sent an invoice. Today, we explore a lesser-known topic: Commitments and Contingencies    What is that strange line on the balance sheet? Many […]

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Scary Word No. 9 – Accrued Expenses

December 22, 2016

By Yesenia Cardona, William Ryan and Charles Saydek     In our last installment, we learned all about Accounts Payable: that accounts payable is a current liability, and that it is usually one of the first liabilities listed on your balance sheet. Today, we explore a related topic: Accrued Expenses.     Here’s a standard […]

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Scary Word(s) No. 8:  Accounts Payable

October 26, 2016

By Yesenia Cardona, William Ryan and Charles Saydek All the way back in installment number two we explained the balance sheet and how it is a snapshot of the assets, liabilities and owner’s equity at a specific date.  Just as the title states, the balance sheet balances.  The formula is assets = liabilities + equity.  […]

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Scary Word No. 7: ‘Intangible’ Assets

September 21, 2016

By Yesenia Cardona, William Ryan and Charles Saydek   Ok, now that is a scary word. What is an intangible and how should I record it on my books? An intangible asset is an asset that is not physical in nature. Examples include non-compete agreements, customer lists, goodwill, and corporate intellectual property such as patents, […]

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Scary Word No. 6 – PP&E

August 31, 2016

By Yesenia Cardona, William Ryan and Charles Saydek PP&E, or Property, Plant and Equipment (okay, this is definitely more than one word), is a vital component in the operation of your business. And for many businesses, PP&E can be one of the largest numbers on the balance sheet. PP&E may consist of land, building, equipment, […]

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Scary Word No. 5 – Inventory

August 9, 2016

By Yesenia Cardona, William Ryan and Charles Saydek           Let’s go back to our recent article about accounts receivable.  A guy walks into the bar and asks the bartender for a drink.  The bartender gives him the drink and tells him how much he owes him and the guy says, “Put […]

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Scary Word(s) No. 4 – Accounts Receivable

July 19, 2016

By Yesenia Cardona, William Ryan and Charles Saydek     A guy walks into a bar and asks the bartender for a drink.  The bartender gives him the drink and tells him how much he owes him and the guy says, “Put it on my tab.”  And this brings us to our next scary word: […]

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Scary Word No. 3: Cash

June 29, 2016

By Yesenia Cardona, William Ryan and Charles Saydek   Well, it is only scary if you don’t have any. So we have previously discussed GAAP and financial statements (yawn). Now it is time to get to the real reason you are in business; to make money. If you find yourself with a large amount of […]

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Scary Word(s) No. 2 – Financial Statements

June 7, 2016

By Yesenia Cardona, William Ryan and Charles Saydek     ***Editor’s Note: To learn more about this topic, we suggest you check out this webinar as well.***   How do companies share their financial information with owners, potential investors, banks and others?  Pictures are nice but it is kind of difficult to draw a liability.  […]

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Scary Word No. 1 – GAAP

May 10, 2016

By Yesenia Cardona, William Ryan and Charles Saydek   In the beginning… the financial world was in disarray.  Numbers and financial information were floating all over the place in no particular order.  Assets, liabilities, debits, credits, dollars and cents… all in random order with different meanings to everyone.  And then it happened: the Stock Market […]

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What Did They Just Say?

April 18, 2016

By Yesenia Cardona, William Ryan and Charles Saydek  Michael Goldman, whose original series served as a source for material and inspiration for this series, wrote, “Most business people and professionals speak their own language. Lawyers use paragraph numbers and cite to section numbers of laws as short-hand for entire trains of thought. Doctors have long […]

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