Income statements are important for assessing a company’s financial performance. Businesses can manage revenue and expenses in the financial plan and budget with variance analysis. Companies use Income statement projections to model and set financial goals.
Financial Operations Hub
Horizontal Vs Vertical Integration
Month End Close Process
Closing the books each month can be a tedious process, but it is vital to ensuring the financial health of your company. The month-end close can help you identify deviations from your financial plan early, so you can respond quickly. Conversely, it can uncover new opportunities for business growth, and drive strategies so you can exploit them.
Break Even Point
By implementing business growth and cost reduction strategies, management can change the break even point for your business calculated by financial analysts. The break even point can also change in response to external factors like inflation resulting in product cost increases, a recession, and increased competition. You have less control over the external factors.
Profit Margin
The profit margin is a financial ratio used to determine the percentage of sales that a business retains as earnings after expenses have been deducted. For example, a 20% profit margin indicates that a business retains $0.20 from each dollar of sales that it makes. By factoring in business expenses, the profit margin determines how well a company is able to manage expenses relative to sales, which makes it a good indicator of a company’s profitability and overall financial health.
Financial Statements
Working Capital
Working capital is the lifeblood of any business. You need it to fund daily business operations, cover expenses, and finance business expansion.
Working capital requirements can vary by industry. A manufacturer may need third-party funding for working capital since it generates revenues only after products are sold. The up-front funding allows the company to purchase the raw materials for productionEven better is the supermarket that can get suppliers to stretch terms to 75 days, which they could negotiate in exchange for expanding shelf space for a product line.
Financial Technology
Electronic Billing
Accounting Equation
The accounting equation is a formula computed as total Assets = Liabilities + Equity. The basic accounting equation originates with double-entry bookkeeping. It ensures that the accounting books are in balance. The source of a company’s accounting equation numbers is its balance sheet. Equity can be Shareholders’ Equity, Stockholders’ Equity, or Owner’s Equity.
Business Process Outsourcing
ROI
ICFR – Internal Control over Financial Reporting
Acid Test Ratio
Invoice Factoring
Fintech Stats
International Payroll
Accrued Revenue
Accrued revenue is an asset account that could be accounts receivable to record revenue that’s earned before cash is received, under the generally accepted accounting principles (GAAP) accrual basis of accounting. GAAP accounting standards, including ASC 606 for revenue recognition in corporate finance, are based on the revenue recognition principle that defines when revenue is earned.
Fractional CFO
Cost Control
Cost control has importance because it lets businesses reduce costs and expenses during the year through analysis and monitoring variances at each budget control level. Managers are accountable for results. Companies that control costs well through optimization practices and cost control tools have a competitive advantage.
Audit Trail
Cash Flow
Cash Flow Statement
A cash flow statement is a financial statement required by US GAAP (generally accepted accounting principles). It shows beginning and ending cash balance, cash flows from operating activities, investing activities, and financing activities, plus some non-cash disclosures on the face of the statement. A cash flow statement may be prepared using the direct or indirect method.
Working Capital Management
Working capital management is managing the cash conversion cycle (CCC) from inventory purchases to the collection of accounts receivable to paying vendors’ accounts payable balances, employee payroll, other accrued liabilities, and short-term debt obligations on a timely basis with adequate financial resources for liquidity.