The GAAP balance sheet indicates that the company has assets of about $1 million, of which approximately two-thirds have been contributed by creditors and the balance by owners. Plant and equipment make up approximately fifty percent of the assets, a... Read more
Execution of the business process is proven, and comparisons are easier because of available financial information. When you add in the impact of technology , it becomes quite complex to come to a definitive equation. It's an important question for a... Read more
Otherwise, an investor might have to calculate it themselves, using the info reported on a company's financial statements or in its annual report. With individuals, figuring liquidity is a matter of comparing their debts to the amount of cash they ha... Read more
In a debt-based financial arrangement, the borrowing party gets permission to borrow money under the condition that it must be paid back at a later date, usually with interest. Be aware that any new money will be expensive for you. Investors who migh... Read more
Mark Suster suspects that most startups will spend any VC money within 12 – 18 months of investment. Burn rate will vary significantly depending on company stage, pricing model, and industry.... Read more
However, to manage a flexible budget, you’ll need a good grasp on the relationship between your revenue and spending. And don’t forget to set aside time to keep your budget up to date, as it’s more labor-intensive than a static budg... Read more
Don’t worry; budgeting isn’t really that difficult once you get started. While there will be a little work required upfront, once you’ve built your budget, it’s just a matter of tracking than anything else.Make sure you think ... Read more
In other words, an invoice is issued to receive money firmly. Therefore, the invoice has a fixed retention period to prove the transaction, and the invoice may be a piece of evidence if payment is not made. Hourly pricing is most common, with rates d... Read more
For investors, the vertical format is the easiest to read because it lists the results of multiple periods in columns next to each other. Here’s a breakdown of those terms as well as valuable tips, resources, and examples to help you create a s... Read more
The strength of GAAP is the reliability of company data from one accounting period to another and the ability to compare the financial statements of different companies. Many experts consider the top line, or cash, the most important item on a compan... Read more
