The essential financial statement analysis toolkit for increasing your business's profit and market value

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Cover of Turning Black Ink Into Gold

About Turning Black Ink Into Gold

The tacit assumption among business owners and their bookkeepers generally seems to be that the primary objective of financial performance reporting is to facilitate the production of an income tax return. To this end, the primary objective of the income statement is to report the company’s net profit. This assumption is misguided. The primary objective of the income statement should be to report the company’s cash flow. Quoting Dr. Pablo Fernandez, recognized as among the world’s leading authorities on business valuation “There is a financial accounting maxim which, although it is not absolutely true, comes very close to it and which is a good thing to remember, net income is just an opinion, net cash flow is a fact” According to Robert Trueblood who led a distinguished body of accountants to study the subject of what information users of financial statements really need the most, their final conclusion was both simple and clear: a need to get a handle on anticipated future cash flows The purpose of Turning Black Ink Into Gold is to show small business owners how high-quality financial performance reporting can improve their company’s profitability and market value

ISBN (ebook): 9781456601560 / ISBN (print): 9781456660628 / Published: 03/21/2011

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About Toby Tatum

Mr. Tatum earned his Master’s Degree in Business Administration from San Francisco State University in the early nineteen-seventies. Immediately upon graduation he along with his brother bought a restaurant employing eleven people. Over the next twenty-years this business grew to operating six restaurants employing two hundred seventy-five people serving a million customers a year. After leaving the restaurant business Mr. Tatum pursued main-street business opportunity brokerage and earned the designation Certified Business Intermediary from the International Business Brokers Association. In 1999 he earned the designation Certified Business Appraiser from the Institute of Business Appraisers. In this capacity he authored the book Pricing A Small Business for Sale: A Practical Guide for Business Owners, Business Brokers, Buyers and Their Advisors. This book was awarded Best Publication of the Year by the Institute of Business Appraisers in 2010. (Available at Valusource.com). For many years, Mr. Tatum served as an instructor for the Key Real Estate School in Las Vegas teaching their pre-licensing course for the State’s required Business Broker Permit. Mr. Tatum has published many peer-reviewed journal articles in various Business Appraisal journals. He has been a guest speaker as several business appraiser conferences and has presented several webinars sponsored by various business appraiser associations. He is a former Editor-in-Chief of the Institute of Business Appraisers quarterly journal Business Appraisal Practice. Mr. Tatum is also a member of the National Association of Certified Value Analysts. As a member of this organization, in 2016 he was cited as one of fifty-nine members as an Industry Titan described as the most influential professional financial consultants in the world.

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