Michael R Jordan CPA LLC

10/22/2026

📊 FINANCIAL FACT THURSDAY

Are your financial statements accurate—or just up to date?

Many business owners review their monthly profit and loss statements without realizing that important accounting adjustments may still be missing.

Consider this:
A business reports $30,000 in monthly profit. During the month-end close, $8,000 in previously unrecorded expenses is identified.

Actual profit? Just $22,000.

That's a significant difference—and one that could affect pricing decisions, cash planning, and business strategy.

A reliable month-end close should include:
✓ Bank and credit card reconciliations
✓ Accounts receivable and payable reviews
✓ Proper accruals and adjusting entries
✓ Financial statement analysis
✓ Management review of completed reports

Financial statements should do more than report numbers. They should provide reliable information that supports better business decisions.

At Michael R Jordan CPA LLC, we believe accurate accounting is the foundation of effective financial management.

Michael R Jordan CPA LLC
Accounting | Tax | Financial Management | Business Advisory
[email protected]
www.michaelrjordancpallc.com

Michael R Jordan CPA LLC provides tax preparation, Fractional CFO services, payroll, and business advisory services for individuals and small business throughout Bergen County and Northern N.J.

10/20/2026

Tax Tip Tuesday: Review Your Business Entity

Has your business grown substantially?

If so, it may be worth reviewing whether your current business structure still makes sense. Sole proprietorships, partnerships, LLCs and corporations can have different tax and administrative consequences. Your entity choice shouldn't be “set it and forget it.”

10/15/2026

FINANCIAL FACT THURSDAY
October 15, 2026 | Michael R Jordan CPA LLC
This Week's Topic: Is Your Business Performing According to Plan?

Financial Fact: A budget is more than a financial projection. Comparing your actual financial results against your budget can help identify problems early, control expenses, and improve profitability.

FACT SHEET
5 Reasons Every Business Should Review Budget vs. Actual Results Monthly

1. Identify Revenue Shortfalls Early
Compare actual sales against projected revenue. If revenue is below expectations, investigate whether the difference is related to sales volume, pricing, customer retention, or timing.

2. Monitor Operating Expenses
Review actual expenses against budgeted amounts. Pay particular attention to payroll, insurance, utilities, professional fees, and other significant operating costs.

3. Understand Profitability Variances
A business may achieve its revenue goals but still fall short of its profit targets because expenses exceeded expectations.

4. Identify Trends Before They Become Problems
A single unfavorable month may not indicate a serious issue. However, recurring unfavorable variances can signal operational or financial challenges that require management attention.

5. Use Financial Results to Improve Future Decisions
Budget comparisons should lead to action. Adjust spending, evaluate pricing, revise forecasts, and establish realistic financial targets based on current business conditions.

FINANCIAL EXAMPLE
Consider a business with the following monthly results:
Financial Measure Budget Actual
Revenue $50,000 $46,000
Total Expenses $35,000 $37,000
Operating Profit $15,000 $9,000

What do these numbers reveal?

Revenue was 8% below budget, while expenses exceeded budget by approximately 5.7%.

The combined effect resulted in operating profit being 40% below expectations.

Without regularly reviewing budget-to-actual results, management might overlook the significance of these differences.

THURSDAY'S FINANCIAL TAKEAWAY
A budget tells you where you planned to go. Actual results tell you where you are.
Understanding the difference can help you make better financial decisions and keep your business moving in the right direction.

MICHAEL R JORDAN CPA LLC
Accounting | Tax | Financial Management | Business Advisory
📧 [email protected]
🌐 www.michaelrjordancpallc.com
Trusted Insight. Practical Solutions. A Stronger Tomorrow.
For general informational purposes only.

Michael R Jordan CPA LLC provides tax preparation, Fractional CFO services, payroll, and business advisory services for individuals and small business throughout Bergen County and Northern N.J.

10/14/2026

Tax Tip Tuesday: Don't Buy Something Just for the Deduction

A tax deduction does'nt make an unnecessary purchase profitable. If your business needs equipment, technology or other assets, tax considerations can certainly be part of the decision—but the purchase should make business sense first. Don't spend $1 just to save a fraction of that dollar in taxes.

10/08/2026

📊 FINANCIAL FACT THURSDAY

Are your sales increasing while your profits remain stagnant?

Revenue growth is important, but it doesn't always translate into stronger financial performance. One financial indicator every business owner should understand is Gross Profit Margin. Consider this:

A business with $1.2 million in annual revenue and a 25% gross profit margin generates $300,000 in gross profit.

Another business with $1 million in revenue and a 35% gross profit margin generates $350,000 in gross profit. That's $50,000 MORE in gross profit despite generating $200,000 LESS in revenue.

This is why business owners should regularly evaluate more than just their top-line sales figures.

Understanding your gross profit margin can help you:

✅ Identify rising costs
✅ Evaluate pricing strategies
✅ Improve operational efficiency
✅ Recognize declining profitability
✅ Make more informed financial decisions

The goal isn't simply to generate more revenue. It's to build a more profitable and financially sustainable business. At Michael R Jordan CPA LLC, we believe that understanding your financial information is an important step toward making better business decisions.

Michael R Jordan CPA LLC
Accounting | Tax | Financial Management | Business Advisory📧
[email protected]
🌐 www.michaelrjordancpallc.com

Michael R Jordan CPA LLC provides tax preparation, Fractional CFO services, payroll, and business advisory services for individuals and small business throughout Bergen County and Northern N.J.

10/06/2026

Tax Tip Tuesday: Start Your Year-End Tax Planning Now

October is an excellent time to begin year-end tax planning. You still have time to review projected income, expenses, retirement contributions, equipment purchases and estimated taxes.

Waiting until December can limit your options.The earlier you plan, the more choices you generally have.

10/01/2026

Financial Fact Thursday — October 1, 2026
Are Your Internal Controls Protecting Your Business?
Internal controls aren't just for large companies. Even a small business can reduce errors, discourage fraud, and improve the reliability of its financial information by establishing a few basic safeguards.

5 Internal Controls Every Business Should Consider

1. Separate Financial Responsibilities
Whenever practical, the person receiving or recording money should not be the same person reconciling the bank account. Dividing responsibilities creates an important check and balance.

2. Review Bank & Credit Card Reconciliations
Accounts should be reconciled regularly. An owner or manager should review reconciliations and investigate unusual, old, or unexplained items.

3. Establish Approval Procedures
Set clear authorization requirements for purchases, vendor payments, payroll changes, refunds, and larger expenditures.

4. Control Access to Financial Systems
Each employee should have an individual login and access only to the information and functions needed for their job. Avoid shared passwords and review access when responsibilities change.

5. Monitor Financial Results
Compare actual results with budgets, prior periods, and expectations. Unexpected changes in expenses, margins, payroll, or cash can be an early indication that something requires attention.

Financial Fact
Good internal controls aren't about mistrusting employees—they're about creating reliable processes.

Even simple controls can help protect assets, improve financial reporting, reduce mistakes, and give business owners greater confidence in their numbers.

Michael R Jordan CPA LLC
Accounting | Tax | Advisory
[email protected]
michaelrjordancpallc.com

09/29/2026

Tax Tip Tuesday: Your Bookkeeping Is More Than Recordkeeping
Good bookkeeping isn't just about preparing for your tax return.
Your books can help answer important questions:

• Is the business actually profitable?�• Which services are most profitable?�• Are expenses increasing too quickly?�• How much cash is available?�• Are you on track for your tax obligations?

Accurate books can become a management tool—not just a tax document.

09/24/2026

Financial Fact Thursday — September 24, 2026

Is Your Accounts Receivable Aging Report Trying to Tell You Something?

Sales are important—but a sale does not become cash until the customer pays. An Accounts Receivable Aging Report can help business owners identify collection problems before they become cash-flow problems.

5 Numbers to Watch

1. Current Receivables

Amounts that are not yet past due. A growing current balance can be positive—provided customers pay on time.

2. 31–60 Days Past Due

This is an early warning sign. Consistent follow-up at this stage can prevent invoices from becoming seriously delinquent.

3. 61–90 Days Past Due

Older receivables deserve increased attention. Review disputed invoices, missing documentation and customer payment commitments.

4. Over 90 Days Past Due

The longer an invoice remains unpaid, the greater the collection risk. Determine whether additional collection action is appropriate.

5. Days Sales Outstanding (DSO)

DSO helps measure approximately how long it takes your business to collect receivables. Tracking the trend over time can reveal whether collections are improving or deteriorating.

Financial Fact

Revenue growth is great. Revenue growth that turns into cash is even better.

Reviewing accounts receivable regularly can help improve cash flow, identify collection issues and reduce the amount of working capital tied up in unpaid invoices.

Michael R Jordan CPA LLC
Accounting | Tax | Advisory
[email protected]

michaelrjordancpallc.com

09/22/2026

Tax Tip Tuesday: Keep Business and Personal Expenses Separate

One of the simplest ways to improve your bookkeeping is to keep business and personal spending separate.

Use dedicated business bank accounts and credit cards whenever possible.

It makes recordkeeping easier, improves financial visibility and helps establish a much cleaner audit trail for legitimate business expenses.