Author name: Badri Prasad Dhungana

Starting simple, using an analogous approach could work well for modelling your payables to your suppliers. Look at creditor days (‘Days Payables Outstanding’) and count backwards again for your last few months’ costs. Remember VAT, and make sure you don’t include payroll or other inappropriate costs in your creditor modelling maths. If things were going …

Forecasting Working Capital for Your Financial Model Read More »

Positive (and increasing) cash flow from operating activities indicates that the core business activities of the company are thriving. It provides as an additional measure/indicator of the profitability potential of a company, in addition to the traditional ones like net income or EBITDA. Cash flow forms one of the most important parts of business operations …

How To Calculate Cash Flow From Assets 2025 Read More »

University instructors and accounting supervisors put a lot of effort into teaching this. They use tools like accounting online resources to help tell the financial story accurately. Following best practices in accounting is crucial for accurate financial records. Groups like the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA) …

Normal Balance of Accounts: Definition and Examples Read More »

If the amount is more than 10% as of the most recent fiscal year-end, then it is considered significant. Since the asset had a net book value of 3,000 the profit on disposal is calculated as follows. For example, if a company exchanges an office building worth $500,000 for another of equal value, no immediate …

Disposition of Property, Plant, and Equipment Accounting Services Read More »

Financial statements, including those showing comprehensive income, only portray activity from a certain period or specific time. A balance sheet with classifications (groupings or categories) such as current assets, property plant and equipment, current liabilities, long term liabilities, etc. A current asset whose ending balance should report the cost of a merchandiser’s products awaiting to …

What is a statement of comprehensive income? Read More »

As you continue to grow your business, remember the key considerations highlighted in this guide. Quality accounting services for startups extend beyond mere numbers crunching or tax preparation—they’re the cornerstone of your financial stability and growth. A reliable accounting service ensures that Legal E-Billing your business remains on solid financial footing, empowering you to make …

Accounting for Startups The Ultimate Startup Accounting Guide Read More »