Difference between Cashflow Statement and Cash Budget The distinction between cash flow statement and cash budget is given below: Difference # Cashflow Statement: 1. The cash flow statement shows the cash inflows and outflows relating to the firm’s operating, investing, and financing activities. The preparation of the cashflow statement is […]
*What is financial planning, and what is its purpose? Financial planning is managing one’s finances to achieve specific life goals, both in the short and long term. It involves assessing current economic status, setting goals, and making a roadmap to achieve those goals by adequately managing income, expenses, investments, and assets. […]
Accounting Strategies that Help Grow Your Business Budgeting and cash flow monitoring are some of the many crucial factors in managing a business. If you do not know how much you receive and spend, you do not know your financial situation. If you go to work, you know the monthly salary […]
Many businesses face cash flow problems because of the delay in receiving customer payments, which brings many difficulties. They use invoice financing to overcome that issue by receiving 75% to 95% of the value of the invoice from the lenders. The invoice finance provider takes control of the payments, such as […]
How do you work out retained earnings? What has retained earnings? Usually calculated at the end of each financial year by doing the profit and loss account and then deducting any dividends paid out. Then the balance is carried forward to the following year and shown in the balance sheet. Usually, […]
*Gross profit and stock valuation Gross profit is shown in the income statement as a figure after deducting all the associated costs in producing your product or services from the sales that are called the gross profit. In another format, Gross profit= Sales- Cost of goods. After calculating the gross profit, […]
Financial ratios are part of monitoring Budget and cash flow An economic rate requires reasoning the connection between two figures and asserting the meaning of that correlation. Financial ratios used to compare the past performance with actuals help in the forecasting of budget and cash flow. There are four types of […]
Classification of ledger accounts When entering the business transaction into five types of accounts becomes the classification of accounts is as follows. And some accounts of these are balance sheet accounts and income statement accounts. Assets Liability Revenue Expenses account Equity account. Withdrawal’s account Accounting categories and their role Asset Account […]
Accounting for inventory Learning about inventory is essential for any business that sells products because you need to buy to sell goods and have a count of the items you hold in your business; if not, you might run or overstock the goods. Inventory means that the goods are bought for […]