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...

Budget shortfalls and decreased revenue are making it difficult for many small businesses to maintain operations. Many organizations and government agencies are looking for ways to cut business...

One challenging task faced by a business owner during an economic downturn is reducing costs without reducing the quality of the product. Fortunately, recent advancements in technology coupled...

Credit constitutes a major part of the money deployed in a Business Project The new entrepreneur as well as the seasoned one are dependent on the financial Institutions and Banks for the Capital...

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...

A financial report is meant to report, both internally and externally, the expenditures and receipts for an organization. Financial reports can be daily, weekly, monthly, quarterly and annually....

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....

A balance sheet is a financial statement that lists a business' assets, liabilities, and equity. Financial statements can be analyzed either vertically or horizontally. Horizontal analysis is...

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...

The theory of a firm states that companies are in business to make money. Corporate finance is the part of a company that deals with managing money and other assets; only through sound and...

Accounting is the method of tracking money transactions in business or for personal use. It monitors income, expenses and assets. An accountant can have a job as simple as a bookkeeper running a...

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...

Good accounting practices require strict attention to the finances of a business, and one good tool is an accurate balance sheet. A balance sheet is a snapshot of the value of a company, and...

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...

Liquidation value is known as the amount you can sell an asset for today. No liquidation is the same; situations and asset values change. However, there are some common steps that can serve as...

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...

Disasters often happen unannounced – a flood, tornado, lightning, hurricane, earthquake, fire or explosion. It’s important that your company have trained project managers with knowledge in...

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...

CAPEX is an acronym for capital expenditure. CAPEX can be defined as an expenditure to purchase or repair a fixed asset. These fixed assets have multi-year depreciation and are not expensed in a...

The accounting cycle consists of several quantitative steps carried out either on a computer or by hand. This is done to enable a company's management staff to make budgeting decisions as well as...

A balance sheet is a document that details a company's assets and liabilities. An asset is property the company owns or any amount of cash resources the business may possess. The liabilities are...

Calculating a business's EFN, also know as "external financing needed" or "external funds needed," is an important aspect of balancing a company budget. When reading a budget, it is critical to...

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...

Accounting is the basic process that an individual or an organization uses to record information about the property that the individual or organization owns, as well as the property or services...

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...

The requirements of a balance sheet are to follow a formula that illustrates the assets equaling the liabilities and the owner's equity. Outline the assets, liabilities and equity to create a...

When creating a balance sheet for a professional medical corporation, include records of the assets, liabilities and owner's equity, as well as assets centered around the property, plants and...

Creative business financing is a relative phrase, meaning different things to different people. However, for most businesses not named Microsoft, IBM, Wal-Mart or Bank of America, creative...

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...

Along with the income statement (also called a profit-and-loss statement), a balance sheet is a critical component of the public status of all companies. All hard assets, liabilities and equity...