Cove Accounting

Also unhelpful in real life: mitochondria is the powerhouse of the cell.

EBITDA sounds complicated.

It’s actually just a way to see how strong a business really is.

By removing taxes, debt, and certain accounting expenses, it focuses on one simple idea:

Is the company profitable from its day-to-day operations?

Investors use it to compare companies.
Founders use it to measure performance.
Smart operators know it’s useful, but never the full story.

📘 Accounting Vocab: Depreciation

When businesses purchase major assets, they typically cannot deduct the entire cost in one year. Instead, depreciation spreads that deduction across the asset’s useful life.

For business owners, depreciation plays an important role in managing taxable income and cash flow. Strategic planning around large purchases can influence how and when these deductions are applied.

Understanding how depreciation works helps ensure assets are not only productive, but also financially optimized.