How do you know when a project is worth the investment? When is it worthwhile to spend a significant amount of money on new equipment or other business improvements? To answer these questions many businesses rely on the profitability index. What is the Profitability Index? Sometimes the...
The government is generally “nice” to businesses in terms of their tax liability. In fact, the corporate tax rate is as low as it has ever been. Large enterprises are really benefiting. But what about the little guy? Well, there is help out there for...
Every small business owner needs to figure out his company's solvency – its ability to bring in enough revenue to pay its bills and still realize some profit. Solvency is important because it can be a gauge of whether a company's general health is good...
One of the most important decisions you'll have to make as a business owner is which accounting system to use for record-keeping. The good news is that your choice is pretty straightforward – cash basis or accrual accounting. A lot of small business owners choose the...
There’s a lot of business terminology and processes to learn as a new small business owner. Whether you have opened your physical doors or are working as a digital freelancer, you are running a business. You have to understand profit and loss calculation and reporting....
Every entrepreneur gets into some venture believing that they can make some money out of it. But no matter what you are doing in order to start seeing some gains, you will need to invest something first. That could be a lump sum of money. Or...
Isn’t it a great feeling to see that you’ve just made a new sale? But as you’ve perhaps noticed it takes time to see those money being deposited into your bank account. This delay has something to do with how most product businesses operate. In particular...
There’s no denying that managing payroll for an SME is challenging. Even if you only have a few employees, staying on top of the paperwork and compliance can chew up a significant chunk of your time. Per recent survey, 30% of small business owners in...
Every business owner has to track the financials. You need to know how your venture is performing, and if there is enough profit to make the business worthwhile in the first place. And, what’s more important, you need income to scale and grow your company...
Inventory. It’s always an issue with a business. Whether a company is bringing in and storing finished products for resale or holding raw materials, products in process, and finished products, inventory is both an asset and a liability. An inventory is an asset if it is...