Business Finance - By Category
Start Your Own Business
A recession is often one of the best times to start a business. However, one of the problems most entrepreneurs have when starting their own business is finding financing.
Basic Accounting Practices
Small business owners and managers have to understand basic accounting practices in order stay in business. Some owners want to take care of the accounting of their businesses themselves. Others want and need to hire accounting and finance professionals for the details.
Budgeting for Business
Budgeting is the process of mapping the present and the future for a small business. Developing budgets for the present allows the business owner to determine how well the firm is staying within the prescribed budget. If the firm is deviating, the business owner must figure out why. Budgeting also involves developing budgets that are essentially financial forecasts for the future.
Financial Statements and Analysis
The owner of a small business performs analysis of financial statements in order to see where the firm is, where it has been, and where it should go. There are several types of financial analysis a owner or manager can use to keep a handle on the firm including financial ratio analysis. These tools are used to forecast the firm's financial needs in the future.
Business Taxes
Small business taxes are an obligation that small business owners spend a great deal of time on. If they don't prepare their own taxes, they collect receipts and records all year long in preparation for outsourcing their taxes to an accountant. Many tax issues face small business owners.
Basic Financial Management
Basic financial management includes activities such as managing the day-to-day operations of a business, such as paying suppliers, cost of capital, and budgeting. It also includes making long-term investments in plant and equipment and obtaining the money or financing for your operations.
Obtaining Financing for your Business
Small businesses, whether you are starting a new business or buying an existing one, have to have money. You can choose debt, taking on investors, personal funds, or some combination.
Interest Rates on Debt Financing
In order to establish an interest rate on a loan, a lender has to have some sort of benchmark. Small business owners also need to be able to calculate their interest rates on their own loans and understand concepts like APR.
Employee Benefits
Small businesses, except the very small, typically offer their employees some types of employee benefits. Examples are health insurance and retirement plans.
Bankruptcy
Is your small business firm on the verge of financial failure? The owner has to know when to make that call. After the decision to close the firm, actions have to be taken such as hiring a bankruptcy attorney and filing for bankruptcy.
Risk Management and Valuation
Risk management and valuation are two important skills that business owners must have in today's uncertain economy. You must be able to determine both the business and financial risk of your business firm. You also must have the skills to place a price on your firm through valuation if you decide to sell.
Profit Planning
The first thing a business must realize is that profit planning must precede other business activities. All costs have to be considered, including a mark-up for planned profit.
Current Events, Issues, and Finance Glossary for Business
Since finance has a language all its own, here is a finance glossary for your use. In addition, there are articles on current events and issues affecting all types of business firms, email courses, and finance lessons.
Buyer's Guide for Business Finance
This buyer's guide will point you to the products that you might be interested in for your finance and accounting operations in your business firm, including products to help you get started.