Business Management

The cash flow statement is one of the basic financial statements, along with the balance sheet and income statement. The cash flow statement shows sources and uses of cash during the reporting...

The cash flow statement is one of the basic financial statements, along with the balance sheet and income statement. The purpose of the cash flow statement is to report the sources and uses of...

Day trading refers to the completed cycle of buying and selling financial instruments on the same day in the financial markets, where the most commonly traded instruments are stocks, currencies,...

A cash budget estimates cash inflows and outflows for a business for a specific period of time. Monthly cash budgets let you know what your available cash reserves are for a given month so you...

Business finance is directly related to accounting and economics. Accounting covers income statements, balance sheets and cash flow statements while economics includes such variables as the gross...

A manufacturing company's financial statements are comprised of three sections: Balance Sheet, Income Statement and Cash Flow Statement. These financial statements are prepared in compliance with...

Listing all expenses related to a business operation and knowing how much revenue an average customer generates will help determine financing options for a cash business. Cash flow from new or...

Your business plan defines your goals, how to attain them and background information about your industry. A robust plan helps your stakeholders make decisions about approving financing, so...

Companies can take many paths to going out of business, but the number-one way is bad cash-flow management. If a business has to pay cash to all of its suppliers, then it has little free cash left...

Extending credit terms to business customers requires a thoughtful approach to some challenging questions. Should credit even be extended, and if so, how much? What are typical credit terms? How...

Commercial debt reduction is the process companies go through to repay or reduce their outstanding debt. Companies have high debt through overleveraging assets to increase production facilities,...

It doesn't matter if you already own a large company or you are just starting out, managing your cash flow is essential to the health of your business. Combining your cash flow budget along with...

Companies that do business overseas will naturally have subsidiaries and divisions that conduct business operations in currencies other than the U.S. dollar. The functional currency is the...

Interest rate risk to a borrower is the risk that rates will rise in the future. Many types of personal and corporate debt are floating, which means that the interest rate can be reset or move...

Corporate treasury is responsible for managing a company's cash flows. It involves balancing inflows of cash with outflows of cash and forecasting future cash needs. Treasury personnel work...

When cash flow is improved, it can benefit your company’s financial situation significantly. Those that are running any type of business know the importance of spending versus receiving money. ...

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...

Every good business needs a strong financial plan. A financial plan helps a business determine and prepare for its future. A financial plan can also keep a business away from potential financial...

Shares of stock represent ownership stakes in companies. Valuing individual shares requires understanding the value of the business enterprise as a whole. Methods for valuation generally fall...

A general ledger holds all the information about a company's transactions including checks and customer receipts. Your bank will create a record of these transactions as it processes documents...

Most businesses maintain a petty cash account, in which a certain amount of money is stored for minimal expenditures that require immediate reimbursement. According to the Business Owner's...

Profit alone is not always enough to sustain a business. A company must also have enough cash on hand to pay its bills. A better gauge of a business's financial health is its cash flow, the money...

The purpose of an audit is to examine the financial records of a business to ensure that it is both following generally accepted accounting principles (GAAP) with legible records that meet...

The following are techniques that will allow you to stay in the clear. This post will show you habits to keep you from falling into the trap of bad debt. Practiced daily you will see results.

Accruals are used in accounting to record income when it is recognized, whether or not it has been received, and expenses when they are incurred, whether or not they have been paid. Accrual...

The bottom line on a profit and loss statement can be significantly affected by whether an entity is using the accrual or cash method of accounting. Under the cash method, income and related...

Because of its more accurate matching of income and expenses, accrual-based accounting provides a more powerful analytical tool than cash basis accounting. Accrual-based accounting keeps better...

Nearly all companies seek outside capital at some stage of their development. In fact, most companies bring in capital several times over the life of the business. As the company grows, capital...

Cash audits are an important internal control for businesses to use when reviewing proper procedures for cash. Restricting the number of individuals involved in the cash process or the number of...

Every day, professional financial managers are making money management decisions: whether to buy, whether to sell, whether to buy and hold. The trick to making successful decisions is to follow a...

Many businesses have an accounting department, and most large businesses have a corporate finance department as well. You may think of finance as including the payment of the company's bills, but...

Treasury management is an important part of the corporate accounting department. Treasury departments are specialized in their accounting activities, and therefore require certain levels of...

Manage your pest control business well, and you will in turn receive financial and lifestyle rewards. If your management skills are below par, your business will suffer and you will endure stress...

Ratio analysis is a very useful tool to quantitatively understand a business's performance. While many managers shy away from ratio analysis, the calculation thereof is not difficult, and it only...

Accounting has been called the language of business and is used in many different situations. Cost accounting is used to streamline manufacturing operations. Managerial accounting is used to...

Factoring allows a business to receive needed cash quickly by selling their accounts receivables at a discount. With the current economy a business can use factoring to help overcome cash flow...

There are basic precautions any investor should take when reviewing cash flow statements, balance sheet statements or a statement of earnings. Cash flow operations depend on the timing of the...

Small and medium-sized businesses can require financing for several different reasons. Some can't afford large investments with their current cash flow and obtain outside financing to improve...

Whether you are a sole proprietor or manage a firm with 100 employees, the rules of the game are often the same; get high profit margins and keep costs down. Unfortunately, businesses often get...

Cash flow is the lifeblood of business. It is the surplus cash on hand after obligatory cash outlays, which include overhead, payroll, purchases, debt, and taxes. Both a business's immediate...

One indication of success is financial status, and business credit is a measure of this success for your lender. It's how they will determine your financial health. If you don't have good business...

Management of credit risk is divided into a macro and micro view. The macro view looks at the entire credit exposure portfolio and tries to optimize asset allocation and the level of...

The accrual method of accounting is an accounting principle that is a foundation of the entire accounting profession. This method is mandated by financial accounting regulation and is not to be...

Corporate finance comprises a three-part process in business. The first part is the manipulation of the assets of the company to make the company as cost efficient as possible. The second issue is...

Point of sale marketing is information given to the customer at the point of sale that would convince them to purchase a product they had not considered purchasing. When you leave a department...

Cash flow is essential to keeping your small business alive. What happens when sales slow down, yet your expenses remain the same? This scenario can be the kiss of death for a small business....

A bookkeeping ledger is an accounting tool used to create a record of an organization's or individual's cash flow. It can be fairly simple or complex, depending on the amount of data tracked and...

Asset retirement obligations (AROs) are technical accounting measures used to determine the liability on assets that occur during the life of the assets. The Financial Accounting Standards Board...

Internal rate of return, or IRR, is used to compare the profitability of various investments. IRR is most commonly used in corporate capital budgeting analysis. Modified internal rate of return,...