Brian C Jensen

When you're managing a business in today’s high-volatility supply chain environment, planning for disruption isn’t optional—it’s expected. From blocked canals to cyberattacks to political conflicts, supply chains are exposed in ways that test your company’s financial flexibility. If you want to remain competitive, your financial strategies must do more than respond—they need to anticipate. This article outlines the financial tools, risk mitigation tactics, and operational decisions you can use to stay agile, protect cash flow, and maintain momentum when supply lines break down.  Rethinking Cash Reserves for Disruption Readiness You need to start by reassessing how much liquidity your business holds. Traditional rules of thumb around cash reserves may no longer be enough. In times of uncertainty, keeping 30 to 60 days’ worth of operating expenses available in liquid form gives you room to maneuver—whether that’s buying from alternate suppliers, absorbing price surges, or accelerati...

Every business owner knows that staying on top of finances is critical, but cost accounting takes this a step further. It allows businesses to dig deeper into their expenses, revealing where resources are being spent and how to use them more effectively. I’ve seen firsthand how cost accounting can transform financial management and improve budgeting strategies. It’s not just about tracking costs—it’s about understanding them in a way that helps you plan, save, and grow. Let me walk you through the core principles of cost accounting and how they lead to smarter budgeting. Identifying and Classifying Costs The first step in cost accounting is figuring out where your money is going by identifying and classifying your costs. I always break these down into two categories: direct and indirect costs. Direct costs are easy to pinpoint because they’re tied directly to a product or service. These might include raw materials or the wages of employees working on production. Knowing these costs al...