Strategic finance is an approach that CFOs and other finance leaders should use. You’ll add significant value to your company through real-time financial and …
ROI
ROI is a useful financial percentage metric measuring stock and portfolio investments’ positive or negative performance. ROI can also be applied to evaluating b…
Time Interest Earned Ratio
Will your company have enough profits (and cash generated) from business operations to pay all interest expense due on its debt in the next year? Use the times …
Return on Equity
A high ROE is better because it means that the return on shareholders’ equity is higher. Analyzing ROE computed with the DuPont formula, companies with higher…
Check vs ACH costs
The main differences between ACH vs check payments are cost, security, and speed of delivery. ACH transfers are electronic whereas checks are physical documents…
Contribution Margin
The contribution margin can be calculated as an overall number for your company, on an individual product basis, or as a contribution margin ratio metric that d…
AP Turnover Ratio
The accounts payable turnover in days is also known as days payable outstanding (DPO). It’s a different view of the accounts payable turnover ratio formula, b…
Multi Step Income Statement
A multi step income statement is more detailed than a simple single step income statement. It provides insights that financial statement users need when reading…
Business Line Of Credit
Business lines of credit can be a great option for businesses looking for a flexible loan. This type of financing is popular among small businesses as an additi…
Conglomerate Merger
Best practices for new conglomerate mergers and other types of M&A should be applied in the integration process and pursuit of cost synergies from combining the…
Royalty Payments
an IBAN (International Bank Account Number) is a critical piece of information. It serves at least three vital functions when an individual makes or receives a…
Internal Rate of Return
Internal rate of return is a capital budgeting calculation for deciding which projects or investments under consideration are investment-worthy and ranking them…
Banking as a Service
A Banking as a Service provider is a FinTech or other third-party company offering businesses a software platform solution for embedding BaaS financial services…
Disbursement Meaning
Disbursements are paid in cash or an equivalent method by your company during a specific period of time, like a quarter or a year. If you use the accrual method…
Cross Border Payments
Cross-border payments are transactions sent from one country and received in a different country. Transfer fees, bank fees, local currency, foreign currency con…
Dynamic Discounting
Dynamic discounting is an excellent tool for vendors and business customers to get paid early, save money, and build solid supplier relationships. Dynamic disc…
Net 90 Vendors
Net 30 vendors offer 30-day credit terms, often combined with early payment discounts like 2/10 net 30. A 2/10 net 30 payment term gives customers the option to…
Net 90
Net 90 credit terms for invoices included in accounts payable are important. As a customer, you’re fortunate to receive these longer payment terms from your v…
Net 60
Understanding how net 60 payment terms work includes understanding how trade credit is granted, standard variations of the net 60 payment term, how net 60 terms…
Accounts Payable Software
Your accounts payable software is vital for paying your vendors and suppliers in a seamless way. With debts and invoices paid on time, your company can focus on…
Operational Efficiency
Operational efficiency is the ratio of a company’s input and output, which determines a system’s overall performance. It’s a measure of how much costs are incur…
Net 60 Vendors
Net 60 vendors are suppliers offering 60-day payment terms to their approved customers through invoices with due dates. This trade credit from net 60 vendors is…
Accounts Payable Aging Report
Businesses use accounts payable aging reports automatically generated by their accounting software to manage accounts payable balances, identify early payment d…
Balance Sheet
Balance sheets are one of the core financial statements presented in business plans and financial models for analyzing potential M&A transactions and establishi…
