If you’re a business owner but don’t have a substantial finance or accounting background, terminologies like liabilities, asset, and equity might confuse you. However, while managing your books and accounts, it is essential to understand these concepts and all that they entail. Before getting into the assets vs equity discussion, you must understand what liabilities…
Many fintech service providers are developing and licensing off-the-shelf accounting and financial management systems to startups, thus seeking high-scale growth. They can now tap into a larger pool of customers by rapidly expanding their offerings and building a strong brand image. Even tech giants like Google and Apple seek to gain a bigger foothold in…
Listening to an accountant speak can often leave you confused, because of various accounting abbreviations and acronyms that they tend to use. Accountants have a second language that is foreign to those who are not privy to the field. But as accounting and finance are an important part of the world we live in, it…
Whether a CFO is essential for a startup has been endlessly debated but the jury’s still out. While some believe a well-trained financial team can handle a startup’s needs, others say that CFOs offer deeper insights that help businesses think bigger for the future. However, before you decide whether you need a CFO or not,…
If you are a small business owner who intends to switch from cash to credit method of selling, be prepared to deal with concerns like “what’s the credit sales amount you need to receive? From whom? And when?” So, what is Accounts Receivable (AR), what involves the accounts receivable process and how does it impact…
Benjamin Franklin once said, “in this world, nothing is certain except death and taxes.”. Whether you are employed, self-employed, or operate your own business, you will need to meet your federal, state, and local tax obligations. Tax is any amount of money, resources, or tradable commodity that is taken up to the ruling power or…
Most startup and small business owners tend to focus most of their time and efforts on understanding assets and liabilities while not considering “equity” as an equally critical aspect of running a business. This guide will offer you an in-depth explanation of what “owner’s equity” is, its importance in the business world, and how it…
The bottom line on a company’s income statement is often the best way to gauge its financial health and foresee a profitable future – if any. The net income indicates whether your company is on track, and heading towards better prospects and long-term viability. To know whether your business is making a profit or incurring…
In accounting, the terms “debits” and “credits” might get confusing at times. This gets even trickier if you are a small business owner with no prior accounting experience and are tasked with managing your books as well. Even if you have an in-house bookkeeper, it is important to understand the basics of accounting so that…
One of the frequently asked questions with regard to business spending is whether the Cost of Goods Sold (COGS) and operating expenses are the same thing. The short answer is: No. How are they different and what impact does it have on your operational efficiency? Let’s take a closer look to identify the key differences…
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