Business Finance: Most Popular Articles
These articles are the most popular over the last month.
How to do Cash Flow Analysis
Cash flow can be defined as the way money moves into and out of your business; it is the difference between just being able to open a business and being able to stay in business. A cash flow analysis is a method of checking up on your firm’s financial health. It is the study of the movement of cash through your business to determine patterns of how you take in and pay out money. The goal is to maintain sufficient cash for firm operations from month to month.
Cash flow can be defined as the way money moves into and out of your business; it is the difference between just being able to open a business and being able to stay in business. A cash flow analysis is a method of checking up on your firm’s financial health. It is the study of the movement of cash through your business to determine patterns of how you take in and pay out money. The goal is to maintain sufficient cash for firm operations from month to month.
Interest Rates
Interest rates are the cost you pay to borrow money on a loan. It's important to know how to calculate interest rates on bank loans. This article shows you how to calculate interest rates using a variety of methods before you take out a bank loan.
Interest rates are the cost you pay to borrow money on a loan. It's important to know how to calculate interest rates on bank loans. This article shows you how to calculate interest rates using a variety of methods before you take out a bank loan.
Profitability Ratios
Profitability ratios are the most important ratios in financial analysis to company investors. Net profit margin, return on assets, and return on equity are some of the most common profitability ratios.
Profitability ratios are the most important ratios in financial analysis to company investors. Net profit margin, return on assets, and return on equity are some of the most common profitability ratios.
Cash Flow Statement
This article is a line-by-line explanation of the preparation of a statement of cash flows.
This article is a line-by-line explanation of the preparation of a statement of cash flows.
Debt and Equity Financing
An overview of debt and equity financing for the small business; the advantages and disadvantages of debt financing for your small business; the advantages and disadvantages of equity financing for your small business
An overview of debt and equity financing for the small business; the advantages and disadvantages of debt financing for your small business; the advantages and disadvantages of equity financing for your small business
Calculate Breakeven
Calculating a company's breakeven point helps the business owner make decisions about fixed costs, variable costs, and the price of the product.
Calculating a company's breakeven point helps the business owner make decisions about fixed costs, variable costs, and the price of the product.
Financial Statement Analysis
This article presents an overview of financial statement analysis and preparation for the small business. It touches on the income statement, the statement of retained earnings, the balance sheet, and the statement of cash flows.
This article presents an overview of financial statement analysis and preparation for the small business. It touches on the income statement, the statement of retained earnings, the balance sheet, and the statement of cash flows.
quick ratio
Liquidity analysis is important to a business as they need to know whether or not they can pay their short-term debt obligations. The quick ratio is a more specific measure of liquidity than the current ratio.
Liquidity analysis is important to a business as they need to know whether or not they can pay their short-term debt obligations. The quick ratio is a more specific measure of liquidity than the current ratio.
Financial Forecasting
Small business owners have to develop the talent to plan ahead if they want their business to succeed. Part of that process is learning to develop projected financial statements in order to adequately plan for the future.
Small business owners have to develop the talent to plan ahead if they want their business to succeed. Part of that process is learning to develop projected financial statements in order to adequately plan for the future.
Income Statement
This article presents an income statement and discusses how to prepare it line by line.
This article presents an income statement and discusses how to prepare it line by line.
Comp Balance Sheets
This article gives you an introduction to the firm's Statement of Cash Flows. It gives you a sample of a firm's comparative balance sheet -- the first step in preparing the cash flow statement.
This article gives you an introduction to the firm's Statement of Cash Flows. It gives you a sample of a firm's comparative balance sheet -- the first step in preparing the cash flow statement.
Business Budget Worksheet
Small businesses need to use worksheets to develop their budgets. This is a sample worksheet that a business can use to develop a generic budget.
Small businesses need to use worksheets to develop their budgets. This is a sample worksheet that a business can use to develop a generic budget.
Liquidity Current Ratio
A firm's liquidity ratios show its ability to meet its short term debt obligations. The current ratio is the broadest measure of liquidity.
A firm's liquidity ratios show its ability to meet its short term debt obligations. The current ratio is the broadest measure of liquidity.
Categories of Fin Ratios
There are five categories of financial ratios. Each measures a different financial aspect of the business firm.
There are five categories of financial ratios. Each measures a different financial aspect of the business firm.
The Balance Sheet
This article will give you a line-by-line explanation of how to prepare a basic balance sheet.
This article will give you a line-by-line explanation of how to prepare a basic balance sheet.
Fin Ratio Analysis
Using financial ratios as a tool of financial analysis is a powerful tool for the small business firm. Financial ratio analysis is powerful if you compare your ratios to either industry or time-series data.
Using financial ratios as a tool of financial analysis is a powerful tool for the small business firm. Financial ratio analysis is powerful if you compare your ratios to either industry or time-series data.
Liquidity Ratio Analysis
Analyzing liquidity ratios like the current and quick ratios, plus net working capital, give company's a picture of their current financial position. This is a simple version of a liquidity analysis.
Analyzing liquidity ratios like the current and quick ratios, plus net working capital, give company's a picture of their current financial position. This is a simple version of a liquidity analysis.
Journal Entries
When a small business makes a financial transaction, they make a journal entry in their accounting journal in order to record the transaction. There are actually two entries made - one is a debit to the appropriate account and the other is a credit.
When a small business makes a financial transaction, they make a journal entry in their accounting journal in order to record the transaction. There are actually two entries made - one is a debit to the appropriate account and the other is a credit.
Relationship Between Fin State
This article describes the relationship between the financial statements based on the accounting equation.
This article describes the relationship between the financial statements based on the accounting equation.
Compare Your Financial Ratios
In order for financial ratios to mean anything, a firm has to have something to compare them to. Usually that means data from previous quarters or years of the firm's financial statements. It can also mean data from companies in the firm's industry.
In order for financial ratios to mean anything, a firm has to have something to compare them to. Usually that means data from previous quarters or years of the firm's financial statements. It can also mean data from companies in the firm's industry.
Net_Working_Capital
Net working capital is a financial formula that accompanies the current ratio in helping the firm determines its liquidity position.
Net working capital is a financial formula that accompanies the current ratio in helping the firm determines its liquidity position.
Prime Interest Rate
Banks use benchmarks to calculate interest rates on small business loans. The annual percentage rate or APR is usually based on the prime interest rate.
Banks use benchmarks to calculate interest rates on small business loans. The annual percentage rate or APR is usually based on the prime interest rate.
Free Cash Flow
Free cash flow is the cash a company has available after meeting all its obligations including increases in fixed assets and paying dividends. It's a better method of determining a company's financial health than earnings per share.
Free cash flow is the cash a company has available after meeting all its obligations including increases in fixed assets and paying dividends. It's a better method of determining a company's financial health than earnings per share.
Financial Ratio Analysis
Financial ratio analysis is an excellent tool to use for your business. You can compare your firm to other firms in the industry or you can compare one year of data to other years of data. It's all about comparison. This is an overview of how to calculate the ratios and what they mean.
Financial ratio analysis is an excellent tool to use for your business. You can compare your firm to other firms in the industry or you can compare one year of data to other years of data. It's all about comparison. This is an overview of how to calculate the ratios and what they mean.
Accounting Equation
The accounting equation is the formula that represents the relationship between the assets, liabilities and owner's equity of a small business. It represents the relationship between the balance sheet and income statement of the business firm.
The accounting equation is the formula that represents the relationship between the assets, liabilities and owner's equity of a small business. It represents the relationship between the balance sheet and income statement of the business firm.
LIFO and FIFO
LIFO and FIFO are two of the most popular methods of inventory accounting. Each has a very different effect on the company's bottom line. Here are the explanations.
LIFO and FIFO are two of the most popular methods of inventory accounting. Each has a very different effect on the company's bottom line. Here are the explanations.
Fixed Charge Cov Ratio
The fixed charge coverage ratio is an important debt ratio in financial ratio analysis because it is a broader measure of the ability of a company to cover its fixed charges than the times interest earned ratio.
The fixed charge coverage ratio is an important debt ratio in financial ratio analysis because it is a broader measure of the ability of a company to cover its fixed charges than the times interest earned ratio.
Cash Flow
Cash flow refers to money that moves into and out of a business firm. Cash flows are used for financial analysis and to assess a company's financial strength.
Cash flow refers to money that moves into and out of a business firm. Cash flows are used for financial analysis and to assess a company's financial strength.
Economic Indicators
Economic indicators, released monthly and quarterly, help us understand the state of the economy. Some of them are the Gross Domestic Product, Consumer Price Index, Unemployment Index, Consumer Confidence, Producer Price Index, and others.
Economic indicators, released monthly and quarterly, help us understand the state of the economy. Some of them are the Gross Domestic Product, Consumer Price Index, Unemployment Index, Consumer Confidence, Producer Price Index, and others.
Average Collection Period
The average collection period of accounts receivable helps a business owner determine how liquid his accounts receivables are. Asset management or asset utilization ratios tell a small business how efficiently it is utilizing its assets to generate sales, in this case accounts receivable.
The average collection period of accounts receivable helps a business owner determine how liquid his accounts receivables are. Asset management or asset utilization ratios tell a small business how efficiently it is utilizing its assets to generate sales, in this case accounts receivable.
Debt to asset ratio
The debt to asset ratio measures the percentage of debt financing the firm has in relationship to the percentage of the firm's total assets.
The debt to asset ratio measures the percentage of debt financing the firm has in relationship to the percentage of the firm's total assets.
Cash Budgeting
This is a profile of one type of budgeting - cash budgeting. Cash budgeting is a short-term form of cash flow analysis.
This is a profile of one type of budgeting - cash budgeting. Cash budgeting is a short-term form of cash flow analysis.
Small Business Loan
This article is a gateway article to a library of information on how small businesses can successfully apply for a small business loan. There is a series of steps listed that small business firms must take in order to apply for a business loan.
This article is a gateway article to a library of information on how small businesses can successfully apply for a small business loan. There is a series of steps listed that small business firms must take in order to apply for a business loan.
Retained Earnings
The Statement of Retained Earnings is the second financial statement that should be prepared. It shows the distribution of net income between dividends and retained earnings.
The Statement of Retained Earnings is the second financial statement that should be prepared. It shows the distribution of net income between dividends and retained earnings.
Total Asset Turnover Ratio
The total asset turnover ratio is an asset management ratio that measures how efficiently a company can use its assets to generate sales.
The total asset turnover ratio is an asset management ratio that measures how efficiently a company can use its assets to generate sales.
Startup in Recession
A recession can be a good time to start a business. Competitors may be dropping out of the marketplace. You may be able to find a niche for your new product or service. Here are reasons that recession may be a good time to start a business.
A recession can be a good time to start a business. Competitors may be dropping out of the marketplace. You may be able to find a niche for your new product or service. Here are reasons that recession may be a good time to start a business.
Capitalism
This is the definition of the financial term "capitalism."
This is the definition of the financial term "capitalism."
Cash Management
Cash is king in small businesses. Without cash and liquidity management, small businesses will not survive one day. Financial ratio analysis is one tool of cash management.
Cash is king in small businesses. Without cash and liquidity management, small businesses will not survive one day. Financial ratio analysis is one tool of cash management.
Debt Ratios
Financial leverage or debt ratios measure a business firm's ability to meet its long-debt debt obligations or those with a maturity of more than one year.
Financial leverage or debt ratios measure a business firm's ability to meet its long-debt debt obligations or those with a maturity of more than one year.
Inventory Turnover Ratio
The inventory turnover ratio is one of the most important ratios in financial ratio analysis. It is a crucial asset management ratio as it measures the efficiency of the firm in managing and selling its inventory.
The inventory turnover ratio is one of the most important ratios in financial ratio analysis. It is a crucial asset management ratio as it measures the efficiency of the firm in managing and selling its inventory.
Chart of Accounts
When you start a small business, develop a chart of accounts as part of setting up your accounting and bookkeeping system. The chart of accounts is an index of all the accounts where the company files its financial information.
When you start a small business, develop a chart of accounts as part of setting up your accounting and bookkeeping system. The chart of accounts is an index of all the accounts where the company files its financial information.
Fixed and Variable Costs
There are two types of costs or expenses in a small business firm. They are fixed and variable costs. Variable costs change as sales change. Fixed costs do not change with sales volume.
There are two types of costs or expenses in a small business firm. They are fixed and variable costs. Variable costs change as sales change. Fixed costs do not change with sales volume.
Loan Amortization
When a bank loan is made, an amortization schedule is set up for the business firm.
When a bank loan is made, an amortization schedule is set up for the business firm.
Start A Business
How do you start a business? If you really want to start a business, this will give you ten steps you should take in order to start a business.
How do you start a business? If you really want to start a business, this will give you ten steps you should take in order to start a business.
Liquidity and liquidity ratios
Liquidity, or short-term solvency, is an important metric for a firm to be able to measure. It measures the firm's ability to pay its short-term obligations on time.
Liquidity, or short-term solvency, is an important metric for a firm to be able to measure. It measures the firm's ability to pay its short-term obligations on time.
Cash Budget & Cash Flow State
There is a difference between the cash budget and the Statement of Cash Flows. The cash budget is a monthly view of your cash position. The Statement of Cash Flows is a required FASB financial statement along with the income statement and balance sheeet.
There is a difference between the cash budget and the Statement of Cash Flows. The cash budget is a monthly view of your cash position. The Statement of Cash Flows is a required FASB financial statement along with the income statement and balance sheeet.
Businesses in Recession
Some small businesses actually prosper in a recession. These are called counter-cyclical businesses. Other small businesses survive but don't actually thrive.
Some small businesses actually prosper in a recession. These are called counter-cyclical businesses. Other small businesses survive but don't actually thrive.
Bank Loan Application Sample
An example of a bank loan application that a small business might have to complete in order to be considered for a loan.
An example of a bank loan application that a small business might have to complete in order to be considered for a loan.
Cash Flow and Profit
Cash flow and profit are not the same thing. Cash flow is the money the business owner has available. Profit or net income is determined by when sales are made.
Cash flow and profit are not the same thing. Cash flow is the money the business owner has available. Profit or net income is determined by when sales are made.
Asset Management Ratios
Asset management or asset utilization ratios tell a small business how efficiently it is utilizing its assets to generate sales. Inventory, receivables, fixed assets, and total assets are analyzed.
Asset management or asset utilization ratios tell a small business how efficiently it is utilizing its assets to generate sales. Inventory, receivables, fixed assets, and total assets are analyzed.
Make Your Business Budget Work
This article gives you six steps to help make a business budget work.
This article gives you six steps to help make a business budget work.
Adjusting Entries
Adjusting entries are made in your accounting journals at the end of an accounting period. The purpose of adjusting entries is to adjust revenues and expenses to the accounting period in which they actually occurred.
Adjusting entries are made in your accounting journals at the end of an accounting period. The purpose of adjusting entries is to adjust revenues and expenses to the accounting period in which they actually occurred.
Fixed Asset Turnover Ratio
The fixed asset turnover ratio measures the company's ability to generate sales from its investment in plant, property, and equipment.
The fixed asset turnover ratio measures the company's ability to generate sales from its investment in plant, property, and equipment.
Bank Term Loans
This is a short article on the basics of commercial bank loans. A bank loan has a particular term (length of maturity) and interest rate.
This is a short article on the basics of commercial bank loans. A bank loan has a particular term (length of maturity) and interest rate.
Gross Profit Margin
The gross profit margin is a profitability ratio that falls in the margin category. It shows average profit considering only sales and cost of goods sold.
The gross profit margin is a profitability ratio that falls in the margin category. It shows average profit considering only sales and cost of goods sold.
What Type Bookkeeping
Small businesses must make a decision between single-entry bookkeeping and double-entry bookkeeping when they are established.
Small businesses must make a decision between single-entry bookkeeping and double-entry bookkeeping when they are established.
Types of Organizations
This article summarizes the different types of different business organizations such as sole proprietorships, partnerships, corporations, and limited liability companies from a legal, accounting, and tax perspective.
This article summarizes the different types of different business organizations such as sole proprietorships, partnerships, corporations, and limited liability companies from a legal, accounting, and tax perspective.
Debt to Equity Ratio
An important debt or financial leverage ratio is the total debt to equity ratio. This ratio measures the amount of debt financing used by the firm as compared to investor financing.
An important debt or financial leverage ratio is the total debt to equity ratio. This ratio measures the amount of debt financing used by the firm as compared to investor financing.
Burn Rate
The burn rate is a measure of how long a company can keep operating until it has to seek more financing. It is calculated by the interval measure.
The burn rate is a measure of how long a company can keep operating until it has to seek more financing. It is calculated by the interval measure.
Types_Bus_Bankruptcy
This article discusses the three types of business bankruptcy. Small business bankruptcy includes Chapter 7, Chapter 11, and Chapter 13.
This article discusses the three types of business bankruptcy. Small business bankruptcy includes Chapter 7, Chapter 11, and Chapter 13.
Tutorial on Debt Ratios
Debt management, or financial leverage, ratios are some of the most important for a small business owner to calculate for financial ratio analysis for the small business. This tutorial will show how to calculate the debt to asset ratio, the debt to equity ratio, the times interest earned ratio, the fixed charge coverage ratio, and the long term debt to total capitalization ratio.
Debt management, or financial leverage, ratios are some of the most important for a small business owner to calculate for financial ratio analysis for the small business. This tutorial will show how to calculate the debt to asset ratio, the debt to equity ratio, the times interest earned ratio, the fixed charge coverage ratio, and the long term debt to total capitalization ratio.
Times Interest Earned Ratio
The times interest earned ratio is a debt ratio that measures how well a business can cover its interest expense. It is one of the debt or financial leverage ratios that businesses need in order to monitor their debt position.
The times interest earned ratio is a debt ratio that measures how well a business can cover its interest expense. It is one of the debt or financial leverage ratios that businesses need in order to monitor their debt position.
LTDebt to Total Capitalization
The long-term debt to total capitalization ratio is one of the debt ratios in financial ratio analysis that measures the extent of the firm's financing with debt. It measures the extent to which long-term debt is used for the firm's permanent financing.
The long-term debt to total capitalization ratio is one of the debt ratios in financial ratio analysis that measures the extent of the firm's financing with debt. It measures the extent to which long-term debt is used for the firm's permanent financing.
Operating Profit Margin
The operating profit margin is a type of profitability ratio known as a margin ratio. The figures to calculate operating profit margin come from a company's income statement.
The operating profit margin is a type of profitability ratio known as a margin ratio. The figures to calculate operating profit margin come from a company's income statement.
Financial Ethics
Small business that engages in ethical financial practices will be more profitable in the long run than small business that does not. Ethical financial practices extend to investors, customers, employees, and society.
Small business that engages in ethical financial practices will be more profitable in the long run than small business that does not. Ethical financial practices extend to investors, customers, employees, and society.
Prepare Business Loan
This is a discussion of four important factors involved in qualifying for a small business loan. Factors include credit history, how much money you will need for start-up assets, your business plan, and your documentation for your loan officer.
This is a discussion of four important factors involved in qualifying for a small business loan. Factors include credit history, how much money you will need for start-up assets, your business plan, and your documentation for your loan officer.
Quarterly Taxes 2009
Most small businesses have to pay quarterly estimated income taxes. These are the deadlines for 2009.
Most small businesses have to pay quarterly estimated income taxes. These are the deadlines for 2009.
Reasons for a Business Loan
This article covers the reasons that small businesses often need to borrow money or take out a bank loan. Reasons include to purchase real estate for expansion, to purchase equipment, to fund inventory, and to increase working capital.
This article covers the reasons that small businesses often need to borrow money or take out a bank loan. Reasons include to purchase real estate for expansion, to purchase equipment, to fund inventory, and to increase working capital.
Small Business Loan
In order to survive, a small business has to be able to obtain a small business loan. Find all your articles about commercial bank loans and other issues related to commercial banks right here!
In order to survive, a small business has to be able to obtain a small business loan. Find all your articles about commercial bank loans and other issues related to commercial banks right here!
Amended Tax Return
Federal income tax form 1040X allows small business owners to amend their income tax returns if they have made an error on them. There are instructions on the preparation and filing of Federal Tax form 1040X - Amending Your Federal Income Tax Return.
Federal income tax form 1040X allows small business owners to amend their income tax returns if they have made an error on them. There are instructions on the preparation and filing of Federal Tax form 1040X - Amending Your Federal Income Tax Return.
What is Capitalization?
definition of capitalization
definition of capitalization
Net Profit Margin
The net profit margin ratio shows how many dollars of after-tax profit a company generates per dollar of sales.
The net profit margin ratio shows how many dollars of after-tax profit a company generates per dollar of sales.
Corporate Tax Rates 2008
Corporate tax rates for businesses for 2008
Corporate tax rates for businesses for 2008
Economic Stimulus
The Economic Stimulus Bill provides tax deductions and credits for small business with regard to depreciation, withholding tax, capital gains tax, and job creation. There are also special breaks for Small Business Administration (SBA) 7(a) loans and 504 loans.
The Economic Stimulus Bill provides tax deductions and credits for small business with regard to depreciation, withholding tax, capital gains tax, and job creation. There are also special breaks for Small Business Administration (SBA) 7(a) loans and 504 loans.
Liquidity
A definition of the term liquidity
A definition of the term liquidity
Trial Balance
After you complete your general ledger entries for an accounting cycle, the next step is to prepare a trial balance. A trial balance is the process of totaling the debits and credits from the general ledger to make sure they balance for the accounting period in question.
After you complete your general ledger entries for an accounting cycle, the next step is to prepare a trial balance. A trial balance is the process of totaling the debits and credits from the general ledger to make sure they balance for the accounting period in question.
Loan for Startup
This article discusses how to get a bank loan for a new business or to buy an existing business. It gives business owners four steps to follow to improve their chances of being approved for a bank loan for a startup.
This article discusses how to get a bank loan for a new business or to buy an existing business. It gives business owners four steps to follow to improve their chances of being approved for a bank loan for a startup.
APR and Stated Rate
A tip on the difference between the annual percentage interest rate and the stated interest rate as they relate to debt financing and bank loans.
A tip on the difference between the annual percentage interest rate and the stated interest rate as they relate to debt financing and bank loans.
Source Document
A source document in an accounting transaction is evidence that the transaction has occurred. It should be recorded as a journal entry as soon as possible. Examples are canceled checks, invoices, purchase orders, and other business documents.
A source document in an accounting transaction is evidence that the transaction has occurred. It should be recorded as a journal entry as soon as possible. Examples are canceled checks, invoices, purchase orders, and other business documents.
Marketing Budget
Marketing is necessary for your small business to survive but it doesn't have to be expensive. Here are some cost-effective marketing strategies to try.
Marketing is necessary for your small business to survive but it doesn't have to be expensive. Here are some cost-effective marketing strategies to try.
Bookkeeping vs Accounting
Bookkeeping and accounting for small businesses are not the same even though the words are sometimes used interchangeably. Bookkeeping is the process of record keeping for the small business. Accounting is the function of interpreting the books and presenting the information.
Bookkeeping and accounting for small businesses are not the same even though the words are sometimes used interchangeably. Bookkeeping is the process of record keeping for the small business. Accounting is the function of interpreting the books and presenting the information.
Fed and Interest Rates
The Federal Reserve is the federal agency responsible for monetary policy. One element of monetary policy is manipulation of interest rates to control the amount of available credit in the economy.
The Federal Reserve is the federal agency responsible for monetary policy. One element of monetary policy is manipulation of interest rates to control the amount of available credit in the economy.
Accounting Cycle
The accounting cycle is a series of steps that are repeated every accounting period that go from establishing the chart of account for the company to closing the books of the company.
The accounting cycle is a series of steps that are repeated every accounting period that go from establishing the chart of account for the company to closing the books of the company.
Successful Entrepreneurs
Some people have the characteristics that make successful entrepreneurs and small business owners and some don't. Also, there are some countries that are better for opening small business than others.
Some people have the characteristics that make successful entrepreneurs and small business owners and some don't. Also, there are some countries that are better for opening small business than others.
Inventory Investment
The amount of your small business's inventory investment directly affects your profit and cash flow. Analyze your dead, slow-moving and productive inventory in order to move out inventory that is dragging down your profitability.
The amount of your small business's inventory investment directly affects your profit and cash flow. Analyze your dead, slow-moving and productive inventory in order to move out inventory that is dragging down your profitability.
General Ledger
The general ledger is the main accounting record for your business. All of the business's financial transactions are taken from the general accounting journal and recorded in the general ledger in a summary form.
The general ledger is the main accounting record for your business. All of the business's financial transactions are taken from the general accounting journal and recorded in the general ledger in a summary form.
Successful Budgeting
Small business have to have a working financial budget that they follow every day. They should estimate income and expenses and record differences in actual and estimated figures.
Small business have to have a working financial budget that they follow every day. They should estimate income and expenses and record differences in actual and estimated figures.
Accts Rec Turnover Ratio
Asset management ratios include the accounts receivable turnover ratio as a part of financial ratio analysis. The accounts receivable turnover ratio, along with the average collection period, measures the efficiency of the firm's credit and collection policies.
Asset management ratios include the accounts receivable turnover ratio as a part of financial ratio analysis. The accounts receivable turnover ratio, along with the average collection period, measures the efficiency of the firm's credit and collection policies.
Initial Investment
what is initial investment
what is initial investment
Managing Cash Flow
Small businesses can't survive without watching their cash flow and practicing good cash management. Here are some articles on cash flow, liquidity, solvency, profit, and other cash management issues that will help small business owners.
Small businesses can't survive without watching their cash flow and practicing good cash management. Here are some articles on cash flow, liquidity, solvency, profit, and other cash management issues that will help small business owners.
Budgeting Tips
Small businesses may see their actual budgets vary significantly from their planned budgets during difficult economic times. When there is an economic downturn, small businesses need to re-evaluate their budgets and make some changes.
Small businesses may see their actual budgets vary significantly from their planned budgets during difficult economic times. When there is an economic downturn, small businesses need to re-evaluate their budgets and make some changes.
Types of Profitability Ratios
Margin analysis and return analysis are the two types of profitability ratio analysis.
Margin analysis and return analysis are the two types of profitability ratio analysis.
What is net working capital?
Measuring net working capital is one financial metric a business owner can use to manage cash and liquidity.
Measuring net working capital is one financial metric a business owner can use to manage cash and liquidity.
Net Working Capital
definition of net working capital
definition of net working capital
Start a New Business
There are steps you must take if you want to start a new business. If you have an idea for a business, you have to identify your product, find your marketing niche, and begin the process of financial management and finding funding for your business.
There are steps you must take if you want to start a new business. If you have an idea for a business, you have to identify your product, find your marketing niche, and begin the process of financial management and finding funding for your business.
Limited Liability Company
The limited liability company is one form of business organization that business owners can choose when they start a new small business.
The limited liability company is one form of business organization that business owners can choose when they start a new small business.
Debit - What is a debit
debit - what is a debit
debit - what is a debit
SBA Loans
The Small Business Administration (SBA) offers a number of loan programs for small businesses. Loan programs include the 7a program for working capital needs, the 504 program for community development and real estate needs, the Patriot Express program for the military, and many special programs for a variety of needs of small businesses.
The Small Business Administration (SBA) offers a number of loan programs for small businesses. Loan programs include the 7a program for working capital needs, the 504 program for community development and real estate needs, the Patriot Express program for the military, and many special programs for a variety of needs of small businesses.
SBA ARC loan
The SBA ARC loan for small businesses debuted on June 15, 2009. This loan program falls under the the 2009 economic stimulus plan. It is targeted at existing small businesses that need help meeting expenses. Here is a list of banks making ARC loans.
The SBA ARC loan for small businesses debuted on June 15, 2009. This loan program falls under the the 2009 economic stimulus plan. It is targeted at existing small businesses that need help meeting expenses. Here is a list of banks making ARC loans.
Keep Out of Bankruptcy
This article gives business owners tips on how to try to avoid business bankruptcy.
This article gives business owners tips on how to try to avoid business bankruptcy.
Stock_Market_Explained
The recession has been devastating to small business owners. This explanation of the evolution of the recession and the role of the stock market and the financial markets may help small business owners know how to react.
The recession has been devastating to small business owners. This explanation of the evolution of the recession and the role of the stock market and the financial markets may help small business owners know how to react.
Travel,Meal Deductions
Travel, meal, and entertainment expenses are deductible, to some extent, for small businesses.
Travel, meal, and entertainment expenses are deductible, to some extent, for small businesses.
5 C's of Credit
This article lists the 5 C's of credit, typically what a bank looks at when determining the creditworthiness of a small business when that business applies for a loan. Each of the items is discussed from the viewpoint of the bank when they evaluate a credit application from a small business.
This article lists the 5 C's of credit, typically what a bank looks at when determining the creditworthiness of a small business when that business applies for a loan. Each of the items is discussed from the viewpoint of the bank when they evaluate a credit application from a small business.
Cash or Accrual Accounting
When you start a small business, one of your first decisions is choosing an accounting method. You can go with cash accounting or accrual accounting depending on several factors.
When you start a small business, one of your first decisions is choosing an accounting method. You can go with cash accounting or accrual accounting depending on several factors.
Cash Flow Tips
Some tips on keeping a healthy cash flow in a small business. Steps you can take to improve your cash flow.
Some tips on keeping a healthy cash flow in a small business. Steps you can take to improve your cash flow.
HDHP
High deductible health plans (HDHP) are paired with Health Savings Accounts (HSA) to provide employees with affordable health insurance and small businesses with an affordable health insurance option for their employees.
High deductible health plans (HDHP) are paired with Health Savings Accounts (HSA) to provide employees with affordable health insurance and small businesses with an affordable health insurance option for their employees.
Is the Recession Over
The economy remains in recession in the second quarter 2009 though it is easing. The GDP, unemployment, consumer and producer price indexes, stock prices, consumer confidence, consumer spending, and Federal Reserve beige book data are analyzed.
The economy remains in recession in the second quarter 2009 though it is easing. The GDP, unemployment, consumer and producer price indexes, stock prices, consumer confidence, consumer spending, and Federal Reserve beige book data are analyzed.
Cash Through Accts Rec
Using accounts receivable to obtain working capital financing for your small business is a good way to raise short term cash. Small business owners can use pledging or factoring accounts receivable to raise money.
Using accounts receivable to obtain working capital financing for your small business is a good way to raise short term cash. Small business owners can use pledging or factoring accounts receivable to raise money.
Determining Profit
Profit or net income is calculated using accrual accounting. Cash flow is determined by cash accounting.
Profit or net income is calculated using accrual accounting. Cash flow is determined by cash accounting.
Stock Market Update
The stock market has been going up for three months. Now there are fears of rising interest rates and inflation. Is the economic recovery real?
The stock market has been going up for three months. Now there are fears of rising interest rates and inflation. Is the economic recovery real?
Changes in 2009 Taxes
There have been changes made in the 2009 federal tax code. Those changes include withholding, social security contribution, and mileage rates.
There have been changes made in the 2009 federal tax code. Those changes include withholding, social security contribution, and mileage rates.
altbizbankruptcy
This article discusses small business financial workouts. Financial workouts are alternatives to business bankruptcy for small business.
This article discusses small business financial workouts. Financial workouts are alternatives to business bankruptcy for small business.
Bank for Your Business
Be careful when you choose a bank for your small business. Compare community vs large, regional banks. Compare the services each offers and how accessible they are to you. Look at the business loan package they offer.
Be careful when you choose a bank for your small business. Compare community vs large, regional banks. Compare the services each offers and how accessible they are to you. Look at the business loan package they offer.
Angel Funding
Angel investor funding for small business provides an overview of angel equity investing in small business firms. Firms who need seed money or second-round financing can apply for angel funding. This article explores the qualifications of an angel investor, how angel funding works, and where you can find angel funding.
Angel investor funding for small business provides an overview of angel equity investing in small business firms. Firms who need seed money or second-round financing can apply for angel funding. This article explores the qualifications of an angel investor, how angel funding works, and where you can find angel funding.
Toxic_Assets
Mortgage-backed securities, better known as toxic assets, are partially responsible for bringing down the U.S. economy into recession. The subprime mortgage crisis started the crisis because banks bought up mortgage-backed securities to the point they didn't have money to loan in the marketplace.
Mortgage-backed securities, better known as toxic assets, are partially responsible for bringing down the U.S. economy into recession. The subprime mortgage crisis started the crisis because banks bought up mortgage-backed securities to the point they didn't have money to loan in the marketplace.
Reasons for a Business Account
In order to satisfy a number of Internal Revenue Service requirements and to simplify recordkeeping, you should always keep your business banking and personal banking separate.
In order to satisfy a number of Internal Revenue Service requirements and to simplify recordkeeping, you should always keep your business banking and personal banking separate.
What is a Ponzi scheme?
This is a description and a history of the Ponzi scheme.
This is a description and a history of the Ponzi scheme.
ReasonBusBudgets
This article discusses the reasons for business budgeting and planning.
This article discusses the reasons for business budgeting and planning.
Current Ratio
The current ratio is probably the most popular financial ratio business owners use to help them manage their cash position and their liquidity. They can use it to both compare their company to their industry and to other year's of company data.
The current ratio is probably the most popular financial ratio business owners use to help them manage their cash position and their liquidity. They can use it to both compare their company to their industry and to other year's of company data.
working capital
definition of working capital
definition of working capital
Holiday Gift Ideas
Small businesses give business gifts to their clients and customers during the holidays like Christmas. Here are some economical gift ideas for small businesses to consider.
Small businesses give business gifts to their clients and customers during the holidays like Christmas. Here are some economical gift ideas for small businesses to consider.
Doing_Outsourcing_Work
You can start a profitable new business during a recession doing outsourcing work for other companies.
You can start a profitable new business during a recession doing outsourcing work for other companies.
Depreciate or Expense
It's always confusing whether or not you should depreciate or expense items on your on your income taxes. The rule is to expense current assets and depreciate long-term assets.
It's always confusing whether or not you should depreciate or expense items on your on your income taxes. The rule is to expense current assets and depreciate long-term assets.
What is a Loan?
What is a loan? A loan in terms of small business finance is a sum of money advanced to a business that must be repaid, with interest, at some point in the future.
What is a loan? A loan in terms of small business finance is a sum of money advanced to a business that must be repaid, with interest, at some point in the future.
History of the Ponzi scheme
This is a discussion of the history of the type of Ponzi scheme that Bernard Madoff ran.
This is a discussion of the history of the type of Ponzi scheme that Bernard Madoff ran.
angelsources
This article lists several sources the small business owner can use to find angel investor funding for the start-up business firm.
This article lists several sources the small business owner can use to find angel investor funding for the start-up business firm.
Inventory Financing
If your small business is running out of financing options, try using your inventory to obtain financing. Using your inventory to raise cash for your working capital needs.
If your small business is running out of financing options, try using your inventory to obtain financing. Using your inventory to raise cash for your working capital needs.
Social Security 2009
The contribution that employers make for employees to social security has changed for 2009.
The contribution that employers make for employees to social security has changed for 2009.
loan application review
This is an example of the internal review document banks use to evaluate your small business bank loan application. This will help you know what to put on your application for a bank loan.
This is an example of the internal review document banks use to evaluate your small business bank loan application. This will help you know what to put on your application for a bank loan.
Prevent a Tax Audit
Small businesses need to know how to prevent tax audits of their small businesses. Here are some steps you can take to prevent the IRS from picking your small business for a tax audit.
Small businesses need to know how to prevent tax audits of their small businesses. Here are some steps you can take to prevent the IRS from picking your small business for a tax audit.
Health Savings Accts
Health Savings Accounts or HSA, in combination with high deductible health insurance policies or HDHP, are a reasonable alternative for small businesses to offer their employees.
Health Savings Accounts or HSA, in combination with high deductible health insurance policies or HDHP, are a reasonable alternative for small businesses to offer their employees.
Basics Venture Capital
What is venture capital and how do you find it? Venture capital is often the financing choice that start-up business firms must make in order to get financing. Owners have to know the basics of venture capital, what venture capitalists want in return for their money, and how to attract them.
What is venture capital and how do you find it? Venture capital is often the financing choice that start-up business firms must make in order to get financing. Owners have to know the basics of venture capital, what venture capitalists want in return for their money, and how to attract them.
Pick your Tax Year
Before you can start operating a small business, one decision you have to make is what tax year are you going to use. You can pick a calendar year or a fiscal year depending on the kind of business you operate.
Before you can start operating a small business, one decision you have to make is what tax year are you going to use. You can pick a calendar year or a fiscal year depending on the kind of business you operate.
SBIC
Small Business Investment Companies, a division of the SBA, are sources of venture capital for small businesses.
Small Business Investment Companies, a division of the SBA, are sources of venture capital for small businesses.
Mileage Rates 09
The amount for mileage which the IRS will allow small businesses to deduct has changed for 2009 because of the decline in gas prices. Here are the new 2009 mileage rates.
The amount for mileage which the IRS will allow small businesses to deduct has changed for 2009 because of the decline in gas prices. Here are the new 2009 mileage rates.
General Business Expenses
Business owners can deduct several categories of expenses from their income taxes. These expenses can be cost of goods sold, capital or deductible expenses, and a variety of other expenses such as business use of the home or vehicles.
Business owners can deduct several categories of expenses from their income taxes. These expenses can be cost of goods sold, capital or deductible expenses, and a variety of other expenses such as business use of the home or vehicles.
Tweak your Business Plan
This article discusses how to adjust your business plan to reflect the conditions businesses face during a recession in order to get a bank loan.
This article discusses how to adjust your business plan to reflect the conditions businesses face during a recession in order to get a bank loan.
Accounting Records
Accounting records are the financial records of a firm that are kept that reflect the firm's financial position.
Accounting records are the financial records of a firm that are kept that reflect the firm's financial position.
Publicity Tips
This article is full of tips on how to use publicity to promote your business. Publicity is free marketing and should be added to your marketing arsenal. Examples of publicity are press releases and events sponsored by your business.
This article is full of tips on how to use publicity to promote your business. Publicity is free marketing and should be added to your marketing arsenal. Examples of publicity are press releases and events sponsored by your business.
Get Your Tax ID Number
If you are starting a small business, even a sole proprietorship, it is best to get an employer tax identification number.
If you are starting a small business, even a sole proprietorship, it is best to get an employer tax identification number.
New Credit Card Legislation
New credit card legislation will protect consumers and small business owners from predatory lending practices of credit card companies. There are immediate effects of this legislation and effects that will take effect in February 2010.
New credit card legislation will protect consumers and small business owners from predatory lending practices of credit card companies. There are immediate effects of this legislation and effects that will take effect in February 2010.
Adjust your Sales Forecast
This article discusses the need for a small business to adjust its sales forecast when economic times change for the better or worse.
This article discusses the need for a small business to adjust its sales forecast when economic times change for the better or worse.
Increase Your Cash Flow
This article gives you a list of ways your small business can increase its cash flow.
This article gives you a list of ways your small business can increase its cash flow.
Financial Statements
One of the last steps in the accounting cycle is the preparation of the financial statements. The information from the accounting journals and the general ledger is used to develop the financial statements.
One of the last steps in the accounting cycle is the preparation of the financial statements. The information from the accounting journals and the general ledger is used to develop the financial statements.
Bootstrap Your Business
Bootstrapping your business or starting up your business means generating funds internally from your cash flows. Bootstrappers watch every dollar and try to run their business on their own funds. These are some steps you can take to bootstrap your startup or new business.
Bootstrapping your business or starting up your business means generating funds internally from your cash flows. Bootstrappers watch every dollar and try to run their business on their own funds. These are some steps you can take to bootstrap your startup or new business.
Closing Entries
Closing entries are journal entries made at the end of an accounting cycle to set the balance of temporary accounts to zero to begin the next accounting period. The accounts that are closed are revenue, expense, and drawing accounts. The assets, liabilities, and owner's equity accounts are not closed because their ending balances are the beginning balances for the next accounting period.
Closing entries are journal entries made at the end of an accounting cycle to set the balance of temporary accounts to zero to begin the next accounting period. The accounts that are closed are revenue, expense, and drawing accounts. The assets, liabilities, and owner's equity accounts are not closed because their ending balances are the beginning balances for the next accounting period.
Credit - What is a credit
Credit What is a credit small business finance
Credit What is a credit small business finance
Bernard Madoff
Bernard Madoff pulled off one of the biggest investor fraud schemes ever through using a Ponzi scheme over two decades.
Bernard Madoff pulled off one of the biggest investor fraud schemes ever through using a Ponzi scheme over two decades.
Interview Bankruptcy Attorneys
Interview a number of bankruptcy attorneys before you hire one. Here are a number of interview questions you can use.
Interview a number of bankruptcy attorneys before you hire one. Here are a number of interview questions you can use.
Frugal Ideas
If you own a small business, you need to cut your budget costs during the recession. Here are some ideas to help small business owners survive and thrive.
If you own a small business, you need to cut your budget costs during the recession. Here are some ideas to help small business owners survive and thrive.