When it comes to accounting and bookkeeping, Debit and Credit are the two words you shall come across the most often. You can have a better knowledge of the accounting process by learning how debit and credit function. It might even make it easier for you to understand complex accounting concepts. What is…
The Cost Of Goods sold is the direct cost of the goods produced by a firm. Now, what is the direct cost? It is the cost that can be related directly to any good or service. In this article, we will tell you everything about the cost of goods sold and how you can control…
Businesses run on the sole motive of keeping growing consistently and earning profits. But all days are not the same. They face some difficulties. What is important here is to constantly monitor the health of your business, the financial ratios and profit margins. The analysts need to constantly evaluate the firms ability to generate profits…
The Asset to Liability ratio of businesses can help assess their profitability and scope for growth accurately. Information regarding this ratio can help prepare financial statements for a company. Assets and liabilities are the foremost things to manage, especially in accounting. Financial statements include the Balance Sheet, the Cash Flow Sheet, and the Statement of…
Money is the primary component of a business. The prime goal of all business entities is to earn profit. Small business entities have a low turnover or are run by 1 or 2 persons. Need not keep a record of transactions as the transactions are limited. Yet, as the business grows. The entity has to…
Understanding what your expenses are is the first step in establishing a business that has a solid foundation. While its true that counting your expenses can be a lot less exciting than counting the profits of what your business provides, it still is an important part of how you can fully understand how the…
All businesses or organizations have two indispensable financial flows: Expenses and Revenue. Let’s have a quick understanding of the mentioned terms. In simple words, revenue refers to the money coming in, and expenses refer to the money going out. The money coming in (revenue) is responsible for meeting the requirements and helping to run the…
It takes a long time and a lot of effort to get to where you can finally start your business. But the hard work doesn’t stop once you begin running your firm. You will face a slew of other milestones and obstacles, accounting being one of them. Accounting is critical as you start your small…
Have you ever wondered how investors and other interested parties assess the financial position of companies before they become shareholders? Alternatively, how do shareholders make informed decisions regarding a company? Parties interested in a company carry out a financial statement analysis to make these decisions. An analysis of financial statements would include a study…
According to the Bureau of Labor Statistics, about half of all businesses will close in their first five years of operations, and one of the most common reasons for closure is mishandling funds and running out of money. Rather than malicious fraud or disastrously low sales, what usually leads to financial crisis comes down…