Category: Blog

Chart of 15-Year Mortgage Fixed Rate vs. 30-Year Mortgage Fixed Rate

Thirty-year fixed rate mortgage interest rates are higher due to the simple fact that the loan is riskier for lending institutions.  In addition, the borrower may be considered to be a higher credit risk, due to low credit ratings and/or low-down payments and incurring higher fees, such as, mortgage insurance premiums.  Fifteen-year fixed rate mortgages…
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How Quickly Can You Deleverage the Business

The economy is in flux, interest rates have increased over the past year and lenders are starting to be less flexible on their loan covenants.  Business executives need to be completely aware of their business’s financial condition, especially how leveraged the balance sheet is and loan covenants that relate to the debt on the balance…
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Chart of Federal Minimum Wage Rate Compared to the State Minimum Wage Rate

The first minimum wage rate was established in the United States with The Fair Labor Standards Act of 1938 and the initial minimum wage was $0.25 cents per hour.  This chart shows Federal minimum wage from 1968, which was $1.60 per hour, to January 1, 2019 where the Federal minimum wage is now $7.25 per…
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Five Ratios that Business Executives Need to Understand

Executives need to understand that ratios are derived from the key components of a business’s financial statements and those ratios need to be viewed as a system that interrelates a business’s financial statements and operations. Ratio 1 – Gross Margin Percent:  All businesses have different expenses that total up to cost of goods sold (COGS),…
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Chart of Effective Federal Funds Rate compared to Bank Prime Loan Rate

The Federal Fund Rate is the interest rate that banks and credit unions borrow money from the Federal Reserve.  (The blue line on the chart.) The Prime Rate is the interest rate that banks and credit unions lend money to their best customers.  The Prime Rate is generally 3 percentage points above the Federal Fund…
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Budgeting: Is it Worth the Time and Effort? Do You Need a Map for a Road Trip?

Budgeting:  Is it worth the time and effort?  Simply stated – businesses should be budgeting for annual business plans, special projects, capital equipment purchases, new product development and more. Businesses that fail to budget have no defined plan to project growth, manage and judge the performance of the business.  Lack of any kind of budgeting…
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Budget – Even If It’s on the Back of a Napkin

by Daniel R. Siburg, CPA, CVA A budget on the back of a napkin is better than no budget at all.  Even the simplest of budgets will make management think about the coming year’s future direction and performance goals for the business. Budgeting Helps the Business Look Forward to the Coming Year Budgeting is important…
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