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Business Tools Blog

category archive listing Category Archives: Definitions

Cash Flow Statement - a simple explanation

Cash Flow statement explained

Balance Sheet - a simple explanation

The Balance Sheet - a simple explanation

P&L or Income Statement - simple user’s guide

Understanding an income statement

Debits and Credits - Accounting 101

Debits and credits explained

SBC and Capital Intensity Ratios

Capital Intensity Ratios used to Approve SBC

MEGO

MEGO = My Eyes Glaze Over

Novation - I learned a new word

Novation - substitution of a new contract for an old one

Should Changes in Volume Discounts be counted in Net Installs?

Question from Rachelle Haid

This month we installed service to a customer who has a volume discount.  This installation caused them to meet a threshold where they will get a larger discount on every active service that they have with us.  Should we count the increased discount in net installs.

Answer:
Since we define net installs as the change […]

Should disconnects due to customer bankruptcy impact the reported net installs?

Should disconnects due to bankruptcy impact the reported net installs?

Can I count this as a sale?

Question from Rachelle Haid

We have a large order volume from a single customer this month.  Some of these orders are adds and some are drops.  The customer has a porting clause in their Service Agreement.   Should I count the adds as new sales and the drops as disconnects, or should I net the amounts and only […]