There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.
Well, here at 2BH we’re going to give you the answers to the questions you might have been too embarrassed to ask.
Here are the terms for today:
Aging is tracking the time between now and when a payment is due on an invoice. (This is usually described in terms such as thirty days, sixty days, and ninety days overdue).
Operating costs are the total costs you have to run the business on a day-to-day basis.
Overhead describes the ongoing administrative costs that need to be paid no matter how much or how little you sell. (This would be a part of your operating costs.)
Photo by Patrick Felle