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Profit First: Reverse Engineer Your Way To Financial Success

Terry Starbucker

What’s wrong with the traditional “GAAP” accounting formula. Highlights from our chat include: Mike’s “Humbling Moment” with his daughter, and how it changed his life. Why the “Profit First” formula works with the entrepreneur’s natural behavior. How Parkinson’s Law works against business owners.

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Mind the GAAP

Harvard Business Review

It’s becoming increasingly difficult to determine whether a firm made a loss or a profit.

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How Can I Choose Management Software That’s Right for My Church?

Strategy Driven

They produce the GAAP principles which state how non-profits should have a fund accounting system in place. Keeping records of donations, contributions, and other financial records is a must for any company. But it’s a legal requirement for non-profit organizations. Non profit money management is governed by FASB rules.

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Giving Executives 40% of Revenue is Insane

Curious Cat

When you read about non-GAAP earnings, often one of the big costs they are excluding is the massive stock giveaways to executives. From the article (linked above), Facebook gave executives 12.8% of revenue – a total of $746,000,000 last quarter (again just in stock based compensation).

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When Tracking Projects, Ignore Your Accountants

Harvard Business Review

They're just following what's known as Generally Accepted Accounting Principles, or GAAP. But GAAP is exactly where the trouble lies. According to GAAP we are now 50% complete, because we have spent 50% of our budget. The GAAP financial report will recognize half the revenue on the project, or $2.5

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When Tracking Projects, Ignore Your Accountants

Harvard Business Review

They're just following what's known as Generally Accepted Accounting Principles, or GAAP. But GAAP is exactly where the trouble lies. According to GAAP we are now 50% complete, because we have spent 50% of our budget. The GAAP financial report will recognize half the revenue on the project, or $2.5

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

In the meanwhile, companies increasingly resort to provision of proforma and non-GAAP reports, even though this practice is looked down upon by the SEC and is opportunistically misused by a few companies. Analysts increasingly rely on non-GAAP metrics.

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