4-Factors-You-Are-Likely-Overlooking-In-Calculating-Your-Sales-Margins

4 Factors You Are Likely Overlooking in Calculating Your Sales Margins

Profit margin is the right indicator of your business profitability. Measuring it with a simple formula like subtracting the cost of inventory from your actual retail sale will not give a clear picture of your true profit margins. Instead, speculate on various other metrics that relate to the calculations of sales and profit margins. While calculating the profit margins of …

6-Types-of-Business-Entities

6 Types of Business Entities

It’s exciting to start a new business. The initial excitement is followed by a decision making phase where you have to decide which entity type your business belongs to. The entity type that you choose greatly affects the way you operate, so it’s important to know what suits you best. A business entity type defines the legal structure of your company. The type you choose will determine:  The …

How to Manage Financial & Bookkeeping Issues

Financial accounting and bookkeeping can be challenging tasks for Small and Medium Businesses (SMBs). Any misstep can cause serious issues that can cause multiple repercussions. However, you can use those mistakes as stepping stones to identify potential issues that may arise in the future, and work towards preventing them from occurring.    Here are four main financial and bookkeeping issues that need to be overcome to ensure a steady flow of revenue for …

Understanding Payroll Management

Payroll is part of the business accounting process that deals with paying remuneration to employees for the services they render to the company. Payroll management takes into consideration all the accounting regulations that dictate how and when to pay the employees. The payroll team is responsible for defining pay components, collection of payroll inputs, calculation of gross and net salary, …

3 Important Financial Statements for Budgeting

Budgeting is a critical aspect of business planning. It entails preparing financially for what lies ahead. A well-thought-out budget plan is a foundation for creating a successful action plan for the business. Budgeting enables businesses to control their finances which can be better utilized to fund current commitments or future projects. It also empowers businesses to meet their strategic objectives …

3 Reasons You Need an External Bookkeeper

Small and medium business owners often choose to keep all accounting and bookkeeping activities in-house to keep costs low. With the multitude of other business functions to take care, these activities are most often carried out hastily or left to be done “another day”. While it can be beneficial to carry on these activities in-house when the business is in …

4 Indicators It’s Time to Outsource Your Accounting & Bookkeeping

In the initial stages of starting a business, most owners find it exciting to do all the work themselves. Later, when the client base expands, they do not find the time, or are short on resources to take care of accounting and bookkeeping in-house. In fact, most of them consider it a cumbersome process that uses much of their daily …

8 Simple Tips for Personal Financial Planning

Personal financial planning is the first step towards gaining economic freedom. It is the process of assessing your current financial situation, planning for expenses, and securing your future by investing money in the right places (such as mutual funds, stocks, real estate, etc.). This wealth building exercise is done by working out daily or monthly budgets, banking, tax planning, retirement …