Having a creative idea can’t only help a startup to grow. The one & only aim or goal of every startup business is to grow financially also to maintain financial stability throughout its lifetime. But the path to achieving this goal is not that easy for startups.
We see around that the economy is booming, yet small business failure is flat? It’s because macroeconomic successes have nothing to do with the day-to-day operations of small companies. Continue reading “3 technologies a small business should use for better cash flow”
Project budgeting is the process of allocating or assigning a cost for a particular project. This cost includes all expenses need to run the project like new equipment purchase, employee costs, average delay costs, operating cost etc.
Financial statement analysis can be referred to as the analysis of financial reports like balance sheet etc. This analysis can be done quarterly or annually as per the business requirement. It helps to assess the past, current & future financial situations of the business.
Cash flow and revenue are very necessary for a small business as it shows the health status. Cash flow & revenue both are different so never take both of this as equal. Revenue shows how the business performs and sales
An investment center is responsible for the growth in revenue of a business or entity through various investments in capital assets. Continue reading “What is Investment Center?”
Ending inventory estimation is a difficult task to carry out. Ending inventory is the amount of ending units of inventory at the end of a month or fiscal year.
We all know that an invoice is raised for the product or service rendered by a business. But do you know a simple invoice can help you to generate more sales for your business?
Income tax form 16 is issued by an employer to its employee as a proof of the amount deducted as income tax has been deposited. Income tax form issued on annual basis i.e. every year on or before May 31st.
Budgeting is the backbone of every start-up. Foresee cash crunch before get sunk in the debt ocean. From simple to complex budgeting do everything with ease. Budgeting can save your business from sinking in debt burden.
A pledged asset is can be referred as the loan risk decrease asset. It helps lenders to decrease the debt risk so that he can provide service with minimal risks involved.
Cash Flow forecast is the process of cash income & expense projection. A business must project cash income & expense for smooth business functioning and to be always ready with cash in hand for any unexpected hurdles.
Here I discussed one part of the problem and how to structure your project cash flow and payment schedules. Continue reading “Structuring your project cashflow – Why do web designing and IT services companies face cash flow issues?”
Cash flow statement represents a company’s cash handling capacity. This statement shows how a company manages its cash, where its generating revenues to fund operating expenses like salaries, rent expense, asset purchase expense etc.
Why companies or say start-up companies need a fully fledged budget plan to successfully run their business? But the question is why? What will happen if they just spend money on priority expenses without following any plan?
Fair market value is the standard or fair market price of a property at the time of selling or auctioning in the open market.
Static Budget can be defined as the budget which never changes irrespective of the actual result. For example: If the operating expense goes above fixed amount then also this budget will not change.
Social Security tax is levied on citizens of United States by United States Govt. Under Federal Insurance Contributions Act.
Memo entry doesn’t have any effect on general ledger, journal or balance sheet as it’s not recorded in these accounts.
When expenses occurred without any cash flow then those expenses are termed as “Non-Cash Expenses”. For example, asset depreciation;
Valuation account is a balance sheet which combines with asset & liabilities account to find out the net carrying amount of respective assets and liabilities. Allowance for doubtful accounts, accumulated depreciation etc. termed as a valuation account.
prime costs are directly related to production costs. These costs are consumed during the production process. It includes the labor cost and raw material cost as raw material and labor are the prime inputs in manufacturing a product.
Spoilage defines leftovers in a manufacturing process. These are also called as product wastes. These can be of two types avoidable and unavoidable.
The hurdle rate is the minimal amount of rate of return an investor needed from his investment in a project. It also called as “minimum acceptable rate of return” (MAAR).