If you’re a small business owner with a handful of employees but have a large customer base, or are a solo entrepreneur handling all of the accounting for your company, make sure you have an efficient and streamlined system in place for managing your finances. Too many businesses fail to keep accurate financial records and ...
Investors and financial professionals sometimes use the terms cash flow and EBITDA (earnings before interest, taxes, depreciation and amortization) interchangeably. In fact, they are not the same and provide different information when analyzing a company’s financial position. A company’s cash flow is reported annually and quarterly in financial reports filed with the Securities and Exchange ...
Ratio Analysis is the basic tool of financial analysis and Financial analysis itself is an important part of any business planning process as SWOT (Strengths, Weaknesses, Opportunities and Threats), being the basic tool of the strategic analysis plays a vital role in a business planning process and no SWOT analysis would be complete without an ...
For a business to be successful, an ideal situation is to have adequate cash balances as well as healthy profit figures, i.e., it should strive to be profitable and cash generative. There is often a great deal of confusion over these two terms as many think that these are similar terminologies used interchangeably. However, what ...
Introduction In the United States of America, the Financial Accounting Standard Board (FASB) has worked to develop standards that ensure a common framework for financial accounting and reporting. As new needs and issues are identified, FASB revises current standards and develops new components. The Statement of Cash Flows is part of the overall financial accounting ...
Many business owners disregard the importance of cash flow statements because they unwittingly believe that their current financial standing can be construed from other financial reports and projections. Unfortunately, however, a cash flow statement is necessary to adequately assess the incoming and outgoing flow of cash and other resources in a business. Not only will ...