Having a thorough knowledge of your company’s cash position with cash flow management is essential for long-term financial success. Preparing a cash flow forecast is one of the best ways to take charge of your financial situation whether you are a startup founder, an SME owner or a solo entrepreneur. A cash flow forecast shows the… Continue reading Preparing a Cash Flow Forecast: the Complete Guide
Cash is the lifeline of any business. It’s not surprising that many of us are aware that how lucrative your business appears to be on paper, if you have insufficient cash to cover employee salaries, creditors, or bills your company can quickly come to a standstill. This is where cash forecasting kicks-in. A robust visibility tool that… Continue reading What is Cash Forecasting? Definition, Benefits, and Real-World Examples
Financial management is one of the most important aspects of any successful business. Cash flow forecasting is one of the most strategic and straightforward financial tools at an entrepreneur’s disposal. Regardless of whether you are the founder of a startup, the owner of an SME, or a corporate financial executive, accurate cash flow forecasting can assist you in… Continue reading What is Cash Flow Forecasting? How to Build a Cash Flow Forecast
Understanding the worth of a company throughout its life cycle — from inception to growth, and perhaps even until sale — is vital for owners, investors, and stakeholders in today’s dynamic and competitive marketplace. A strong business valuation is a key element for making informed decisions, whether you are getting ready to sell your business, secure… Continue reading Business Valuation: 9 Valuation Methods, Formula & How-To Guide
Businesses are the backbone of innovation, jobs and growth in the modern economy. If you plan to launch your own business or simply want to know how different kinds of businesses operate, it is vital to understand their structural and operational differences. For businesses, there are different types (sole proprietorship, corporation, non-profit, etc.) that have their own legal,… Continue reading Types of Businesses: Business Structures, Models, and Financial Considerations
Knowing how to calculate net income is key to your ability to manage your personal or business finances. If you’re a small business owner, an accountant, or a student of finance, you’re going to encounter net income repeatedly in financial statements and reports. In this article, we will covering with what is net income, how to calculate… Continue reading How to Calculate Net Income (With Formula and Examples Inside)
To those in the financial markets, though, pricing out a company, an investment, or any type of income-producing asset in general is more science than art. 4. Discounted Cash Flow: One of the strongest, most reliable, and theoretically soundest models among all approaches to estimate value. The DCF formula has made investor, analyst, entrepreneur alike more informed about… Continue reading Your Comprehensive Guide to Understand Discounted Cash Flow (DCF)
Comparing results of different periods of unique importance in finance and business performance analysis. It enables companies, investors, and analysts to surface trends, measure progress, and make informed decisions. Multiple financial metrics can be used for this purpose, but among them, Year-over-year (YOY) analysis is one of the best and simplest tools to use. YOY comparison will help… Continue reading What is Year Over Year (YOY) in Finance, and What Does it Measure?
Developing financial forecasts is a critical process for startups as it helps to obtain investors’ funds, predict the further business development, and avoid financial instability. Financial projections are a smart tool needed to make the right decisions, identify risks, and present business sustainability to the financier. Forecasting is important in ascertaining the potential flow of… Continue reading How to Startup Create Startup Financial Projections [+Template]