Often, your small business is successful because of your expertise in making your product or providing your service. Unfortunately, you might not be an expert at the other important parts of running a business, such as managing finances. If you don’t have a lot of experience with managing business finances, it can be a challenge, […]
Tracking purchasers who have paid against those who haven’t illustrate your company’s accounts receivable turnover ratio. In single-entry bookkeeping, each transaction is recorded as a single entry in a ledger, while in double-entry bookkeeping, a transaction is recorded twice. For example, if you make a $30 sale, in the double-entry system that transaction could be recorded […]
Each category consists of several smaller accounts that break down the specifics of a company’s finances. These accounts vary widely by industry, and the same terms can have different implications depending on the nature of the business. Companies might choose to use a form of balance sheet known as the common size, which shows percentages […]
You will learn how to utilize this ratio’s formula to examine a company’s current debt situation by looking at its equity. The return on equity ratio varies from industry to industry and depending on a company’s strategies. For example, a retailer might expect a lower return due to the nature of its business compared to an oil […]