Other Business Management

You have decided to close your business and now there is equipment to return or sell, employees to take care of and taxes to be considered. Although some owners declare bankruptcy as a way of...

When a company goes bankrupt, the most important question is "Who owns what?" This is a particularly important question if you are seeking a white knight buyer for your failing company or...

Current ratio is a measure of your business’ ability to meet its current liabilities using current assets. Current ratio is an indicator of liquidity or the amount of money available to pay your...

An important concept of asset accounting is the valuation of assets recorded on a company's general ledger. The two prominent methods for asset accounting are accounting value and fair-market value.

Pre Pack liquidation or Phoenixing is used to describe the process to save a failing business, where the assets of a failing business are purchased by a new company. The new company trades without...

In accounting the general ledger is the central financial record of the business. Every transaction is recorded in the general ledger. A transaction is a typical business event which can be...

Financial statement analysis compares ratios and trends calculated from data found on financial statements. Financial ratios allow you to compare your business' performance to industry averages or...

Accounting procedures are used as a way to document control procedures for a specific organization, department or asset class. They help organizations to identify, control, use and maintain the...

Accounting management looks at internal accounting data to provide insight into company operations and future trends. It can be used to help guide strategic and tactical decision-making....

The purpose of financial accounting is to record, classify and summarize financial transactions that occur within a firm. It is primarily concerned with reporting results of economic activity to...

Business structures are created by statutes or laws and vary by state. Limited partnerships represent types of unincorporated businesses that differ from incorporated businesses, like...

Debt ratio is a financial formula that investors use to determine a company's financial strength. Companies with high debt ratios carry considerable risk if sales fall and the company cannot meet...

The decision to sell your business isn't an easy one. It should be made after careful deliberation about why you are selling your business and whether or not you can afford to do so. You need to...

If you are starting a new business or looking at restructuring the one you now own, you may want to consider incorporating. Some business owners may be hesitant about incorporating, thinking that...

There are many benefits to understanding basic accounting concepts. Understanding accounting will help you become a better, savvier investor. You will have a better idea of what it takes to run a...

A ratio is a mathematical expression of the relationship between one item and another. Financial ratios are used by decision makers to analyze different aspects of the firm's operations. Just...

Accounting is the systematic recording and classifying of a business's financial records. Accounting transactions fall into one of several categories: assets, liabilities or owner's equity. Asset...

In accounting, a balance sheet lists a company's assets (what it owns or has rights to), liabilities (what it owes to others) and equity (the net worth). A classified balance sheet segregates or...

Disaster recovery planning is a three-step process that every business needs to undertake. The first step is determining the different risks facing your business. Once the particular risks are...

Balance sheets provide a snapshot of a company's financial condition at a specific moment. Balance sheets follow a common format and include a company's assets, liabilities and owners' equity or...

The Altman Z-score is a formula that was created by Edward Altman in 1968. The score combines five different financial ratios in order to determine the fiscal health of a company. The formula...

A balance sheet, or statement of financial position, is an accounting tool used to get a picture of where company stands at a certain point in time. The balance sheet is one of the financial...

Financial statements are critical in determining the financial health of a company. The balance sheet is where you will find information about a company's assets held and liabilities owed. A...

A business balance sheet is one of the two critical financial statements of every company. While the income statement displays how successful the company is at making a profit, the balance sheet...

The primary goal of financial data analysis is to maximize the wealth of the shareholders and the overall profitability of the company. Financial managers maximize the wealth of the shareholders...

Mark to Market Accounting is a principle applied to the value of a company’s assets in the United States. Simply stated, it values the assets at today’s market price or the price you can get on...

Shareholder equity indicates the net worth of the net worth of the company, accounting for all liabilities. It is the portion of the assets of the business left over after all liabilities have...

Classified balance sheets are used in accounting practices to list assets, liabilities and stockholder equity by breaking them down into specific categories. This classified format makes it easier...

General ledger accounts are the backbone to any accounting and financial information that comes out of a company. They cover all aspects of a business with regard to the flow of money and can be...

Generally accepted accounting principals (GAAP) are rules that govern the way a business must report earnings, losses and activity surrounding their property. The GAAP allows for depreciation of...

When a private company is seeking loans, investment funds or a sale, a thorough valuation that establishes a fair value of net tangible assets (book value) is a strong complement to the firm's...

A balance sheet is a snapshot of the assets a company owns, the debts it owes, and how much it is worth. It is one of the tools management, lenders and investors use to assess a company's overall...

Using balance sheet equations properly is an extremely important factor when running a business. A balance sheet is basically a report card that lending institutions, stockholders and others use...

Balance sheets provide a breakdown of assets, liabilities and owner's equity so that stakeholders, investors and members of the management team can obtain an overview of each account at the end of...

The total expense ratio is a ratio that is used to describe the management costs associated with an investment fund. This ratio is important to calculate as it will help investors and the fund's...

Classified Balance Sheets are one of the major financial statements standard to the business world. They are a great way to see current assets and expenses--basically take a financial temperature...

In order to understand and determine the financial health of an organization, it is a good idea to analyze the balance sheet. A few simple calculations can provide insight into the firm's...

The main principles of accounting will help you understand the relationship between accounting and business transactions. Learn the basic accounting principles for how they are applied to...

Financial ratios are tools that give you a glimpse on how well a company is doing. Some ratios help you measure how fast a company is moving inventory, how quick it's collecting on payments, and...

A company's accounting balance sheet clearly outlines the company's assets and liabilities for the most recent accounting cycle. These values are important for assessing business performance,...

Learn to mark liquid assets on a balance sheet. Develop an eye for liquid assets, and easily scan a balance sheet to determine profitability in any company. Readily present your company's assets...

A balance sheet is basically a summary of the company's balances. It applies to a single point in time. The balance sheet consists of assets, liabilities and equity. Assets are normally listed...

Maintaining an accurate inventory of fixed assets and capitalized equipment is critical to organizations of all sizes. Organizations realize significant savings and benefits through accurate...

The Balance Sheet is a financial statement that reflects a company's assets, liabilities and equity for the financial year. Short and long-term investments are typically comprised of real estate,...

A Balance Sheet is a document that businesses prepare to show the status of their financial health. Some accountants refer to a balance sheet as a “Statement of Financial Position”...

Whether you are considering buying, selling or refinancing a company, you will need to estimate the company value. Expect to calculate a value range instead of a specific worth because there are...

If you are considering buying or selling a business, you will first need to find out how much the company is worth. Keep in mind that a private company’s value isn’t set in stone...

Tracking your assets and liabilities is one of the most important business management skills to develop. The first step in tracking these things is to classify your assets and liabilities...

Balance sheets and income statements don’t always tell the whole story of a company’s financial health. Sometimes, more detailed benchmarks are necessary to give a current report...

Many people who work contribute to a 401K plan. These plans are made of up investments into publicly traded companies. Experts know how to glean the information they need from these companies to...