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PayPal is a very well known merchant company, almost everyone has heard of it.  It’s a company that people trust not because of it’s name but because of the security it offers. With PayPal you can get an Business and Personal account for free. A personal account is good for when you want to manage your money online, money you might get from programs that you are involved in on the Internet.  It’s actually quicker to get your money that you earn online with Paypal instead of waiting for a check to come in the mail. If you need money you can also have people to wire you money to your paypal account it’s simple and easy.  With a Business account you can manage your business money, you can accept payments with credit cards on your own business website and to sign up for this useful tool is free. Read the rest of this entry »

A previous article, showed the differences between profit and cash flow. Many business people understand the difference, but my previous article highlighted the importance of CASH MANAGEMENT! I will attempt to provide more detail, with regard to cash management, in this latest offering.

The thrust of my articles, attempt to explain the difference between profit and cash. The cash building strategy outlined below, will reflect differently in the books of account of a business. In fact, these reserves will nor reflect on the Profit and Loss/ Income Statement accounts, and yet, it is the most crucial aspect of the finances! Read the rest of this entry »

Dave Packard Chairmen of Hewlett-Packard said “Tell me how a person is measured and I’ll tell you how they will perform.”

Business Metrics are tailored performance measures that promote the strategic goals and objectives of the organiza­tion.

The spectrum of business measurements spans a wide variety of management methods. Traditional financial measures, such as Work in Process (WIP) and piece rates, are rapidly being replaced by time based measures, like Raw and In-Process (RIP) and rate based planning. Read the rest of this entry »

Discounting of Revenues and Expenses

Business valuation involves the study of many aspects of a business, including anticipated revenues and expenses. Because cash flows extend over time, a discounted cash flow (DCF) model can be a helpful tool.  A discounted cash flow analysis for a business valuation requires the analyst to consider two components: (i) a projection of ongoing revenues and expenses of the foreseeable future; and, (ii) a determination of the discount rate to be used. Read the rest of this entry »

In the modem world no business can afford to remain secretive because various parties such as creditors, employees, taxation authorities, investors, public and government etc., are interested to know about the affairs of the business. Affairs of the business can be studied mainly by consulting final accounts and the balance sheet of the particular business. Final accounts and the balance sheet are end products of book-keeping. Because of the importance of these statements it became necessary for the accountants to develop some principles, concepts and conventions which may be regarded as fundamentals of accounting. Such fundamentals having wide acceptance give reliability and creditability to the financial statements prepared by the accountants. The need for ‘generally accepted accounting principles’ arises for two reasons: Read the rest of this entry »

Invoice factoring is probably the most popular form of business financing. Companies across the United States are using invoice factoring to eliminate the need for traditional loans, and to increase efficiency. Many industries rely heavily on invoice factoring, and since it has proven itself time and time again, they should. Every industry from medical to transportation can benefit from invoice factoring. If you’re not convinced read below and find out the top 5 reasons to obtain invoice factoring services. Read the rest of this entry »

Accounts receivable factoring is one of the most commonly known terms in the business world. Businesses everywhere understand that accounts receivable factoring is the easiest and best way to obtain funding. For years businesses have taken advantage of them factoring because of its speedy approvals and ease of qualification. But there are some dangers that lie within accounts receivable factoring. It is important to understand what these dangers are and how to avoid them so that you can reap the full benefits from your business funding. Things like varying interest rates, deceitful contract terms, instable loans and others will have a dramatic impact on your business. It is prudent for long term success to analyze and pre pare when you acquire accounts receivables factoring. Read the rest of this entry »

India is one of the oldest civilizations in the world. Their history goes back over 10,000 years. India is the largest democracy in the world. As of July, 2007, the Central Intelligence Agency for the United States Government estimated that the population of India is over one billion, one hundred twenty nine million people. In contrast, the population of the United States is estimated to be a little over three hundred two million people. That’s 129,000,000 versus 302,000,000 people; India has over four times the population of the U.S. in a geographic area lightly more than one-third the size of the U.S. Read the rest of this entry »

Expenses like income are treated differently depending on your method of accounting (cash or accrual).  Cash accounting says a cost is “expensed” when you write the check to pay for it.  Accrual accounting expenses the cost when the transaction occurs whether or not money is exchanged, e.g. a supplier may give you 30 days to pay your bill or you may pay your payroll/sales taxes monthly.  Accrual accounting attempts to keep expenses matched up with the sale that generated it.  Bills that are paid in a lump sum for the year can be accrued (spread out) each month; e.g. unemployment insurance is paid in lump sums which throws off your P&L because of the large payment. Read the rest of this entry »

Whether you are a limited company, a sole trader, or a partnership, hiring an accountant might just be the first step that you can take to help you achieve all of your business goals and targets. With any important decision, it is crucial to understand how the benefits outweigh the costs. Here are some of the benefits an accountant can offer your business can prosper: Read the rest of this entry »