How to Measure Profitability vs Profit in a Business

businessman and businesswoman looking at a graph on a screen

Profit and profitability are two separate concepts. Here’s how they differ and how to start measuring. Key takeaways: Profitability is a metric that tells you if your business is viable, and it’s a measurement used by investors Profit is the dollar amount of net earnings in a given period Measure profitability by assessing gross and…

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A Basic Guide to the Roth IRA: Tax Pros and Cons

box of money with Roth IRA Tax Free written on sticky notes

The Roth IRA is a tax-advantageous option for retirement savings. Learn how it works and who should use it. Key takeaways: Pros: Tax-free withdrawals. Withdraw contributions for any reason at any time without paying tax. Money grows tax-free. Make contributions at any age. No income limits on conversions. Lots of investment options. No required minimum…

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What Is a Capital Expenditure and What Are the Tax Implications?

watering can pouring on stacks of coins representing business growth

Capital expenses are large purchases required to keep a business growing. Here’s what you need to know about these costs, including the tax implications.  Key takeaways: Capital expenditures are long-term investments like technology upgrades or significant equipment purchases These purchases are recorded on the balance sheet since they’re investments, not everyday operational costs Capital expenditures…

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8 Quick Tips for Better Business Cash Flow

two baskets of dollar bills that say in and out

How can you find the right balance for optimized cash flow? Start with these eight tips. Key takeaways: 8 tips for better cash flow: Maintain visibility Be prompt with payments and invoices Be on the lookout for changes Try renegotiating Reevaluate your invoicing practices Cut unnecessary costs Use accounting software Consider a line of credit…

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