Many service-based businesses do not get paid immediately after serving their customers. Instead, they send invoices to their customers that contain the agreed-upon due date for the full payment. This business model has worked for generations but doesn’t always achieve the expected result. Common problems include customers failing to pay on time and businesses extending […]
It’s important to know your business’s value for multiple reasons. You’ll likely need to present this figure when speaking to investors and financial institutions. If you sell your business, you must make sure to offer an appropriate price. When reaching out for media coverage, attaching an impressive valuation to your business will greatly increase your […]
Many finance professionals use the internet as a platform for sharing their expert opinions. With so many opinions coming from so many people, deciding which piece of advice to take can be intimidating and confusing at times. But when you really look at all this content, it’s abundantly clear that educated finance professionals follow the […]
Aspiring entrepreneurs need to know several very important things before starting new businesses. First, they have to know what kind of business to start and how their strategy will achieve success. But that’s just the fun part. Once these thrilling brainstorming sessions come to an end, you must now determine your business’s startup costs. The […]
APR, which stands for “annual percentage rate,” makes it very easy to compare the costs of different business loans or credit cards. The need to calculate APR stems from the fact that in addition to interest or factor rates, most business loans have multiple fees. This can include loan origination fees, document preparation fees, processing […]
When shopping for business loans, it’s extremely important to know each option’s true cost. At first, that seems pretty easy: you just calculate the loan’s APR, right? This might help you determine the cheapest option available. But when you think of the big picture, it becomes clear that APR does not account for numerous other […]
While it’s not the most exciting task in the world, accounting is one of the most crucial elements that holds a business together. Moreover, bookkeeping and financial management are more than just something your accountant does. Big companies have entire departments that cover this aspect and anyone who has ever been in an executive position […]
The success of your small business largely depends on your management of working capital. But working capital doesn’t just mean cash. By definition, the term working capital refers to all assets currently available for covering business expenses or operational costs. In other words, it’s not how much cash you have that matters. It’s the value […]
When it comes to the responsibilities of business owners, very few can match the importance of staying on top of the right numbers. This includes profitability, performance data, and of course, working capital. Small business owners must constantly keep tabs on how much working capital they have on hand. Without this information, countless critical tasks […]
Even the most intelligent business owners have trouble understanding small business tax rates. They might not know how many different types of taxes they have to pay, how each rate is calculated, or which factors have the biggest impact on their final tax bill. The answer to each question isn’t entirely clear because it depends […]
