Financial Operations Hub

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.

Horizontal and vertical integration are important parts of a company’s M&A strategy to increase return on investment, attain rapid global growth, gain new technologies and talent, improve supply chain and product quality and timeliness, improve distribution, and find opportunities to reduce costs.

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.

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.

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.

Understanding financial statements is essential for accounting and finance team members, CEOs, business owners, creditors, and shareholders. This article provides financial statement basics and some more advanced concepts for complex companies.

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 is advancing globally to improve and create financial applications with AI/ML-driven, algorithmic digital technology. FinTech significantly expands the types of financial data used. It enables insights, automated decisions, and actions for businesses and consumers.

You want to integrate as seamlessly as possible with existing accounting and ERP systems. However there are many key steps along the supplier payment process that still require significant manual effort beyond sending out payment instructions to the transfer API for bank, ACH, and wire services.

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. 

In this article, we will look at the benefits of business process outsourcing, discuss the best practices for selecting an external provider, and examine what sort of issues can arise during the implementation of an outsourcing contract.

ROI is a useful financial percentage metric measuring stock and portfolio investments’ positive or negative performance. ROI can also be applied to evaluating business investment projects, especially when the returns can be quickly realized on an investment.

This guide provides an overview of ICFR meaning and objectives, internal control, ICFR requirements for public companies, and links to other helpful ICFR resources. If your company has the growth potential for going public, you’ll be ready to meet ICFR requirements.

The acid test ratio is a more stringent financial ratio than the current ratio. Acid test ratio doesn’t include inventory and prepaid assets in the numerator, as does the current ratio.

Invoice factoring is a financing option where you sell some or all of your outstanding invoices, or accounts receivable, to a third-party to improve your cash flow. The third-party factor will charge a fee, also known as a discount, for providing the service.

There are a lot of general arguments to make for the fintech market and working this into your business model. When it comes to market share and data analysis, the numbers always come out on top.

International payroll, including payments to employees and independent contractors like freelancers, is a complex process that requires expertise. International payroll consultants and services provide valuable insights into country payroll policies and how to pay international employees.

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.

Your business can find a fractional CFO for hire through several sources. Is your business planning to hire a part-time CFO employee through the payroll or find an independent contractor or freelancer for hire via a contract?

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. 

This article defines an audit trail. We describe the purpose and importance of audit trail and provide audit trail examples. The primary focus is on the beneficial use of real-time software audit logs in financial and business applications.

Your first step to ensuring healthy business growth is understanding cash flow, the difference between cash flow and profit, and the purpose each serves. You’ll manage day-to-day operational processes. Small business owners will realize proper cash flow management is essential.

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 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.