It will be very important if a major corporation asks to acquire you for hundreds of millions of dollars, or if you are raising outside funding from a professional investor. Now you can either do your own accounting, or [...]

It can also lead to a dependence on short-term financing, which is typically more expensive and can further heighten financial vulnerability. As shown above, the DSCR is 1.23x in year 1 and then steadily improves over the holding period [...]

Instead, this detail is included in the business’s profit and loss statement. In other words, equity is what is left for the business owner after all the liabilities are paid from the business’s assets. This means the business owner [...]

Automated systems also offer robust error-checking mechanisms, flagging discrepancies and potential issues for review. This proactive approach to error detection not only improves the accuracy of financial records but also ensures compliance with accounting standards and regulations. By leveraging [...]

This implies that debt financing rather than equity funds a significant portion of Apple’s total assets. Verizon’s equity multiplier of 4.41x shows they rely more on equity than debt for financing. Investors should be cautious of high ratios in [...]

If you don’t provide your clients with an invoice after setting up a predetermined payment arrangement, it will be nearly impossible to receive payment. By following these steps, truckers can effectively manage their bookkeeping and maintain financial organization, allowing [...]

Social Security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Medicare tax pays for benefits under the hospital insurance part of FICA. Unemployment insurance was created to provide employees with some degree of [...]

The issuer can buy back the bonds by paying the call price together with its accrued interest up to the date (which allows them to stop paying the interest immediately). In effect, the bonds are not actually bought back [...]

For our example, let’s use a fixed-rate, 30-year mortgage, as it is one of the most common examples of amortization in action. This reduces the deferred charge (Bond Issue Costs) and records the annual expense. Carrying value is often [...]

A product backlog is more than a simple to-do list—it’s where you break down complex tasks into a series of steps and delegate them to team members. Follow these four steps to develop an effective product backlog. Occasionally, there [...]