Have you ever felt a slight disconnect between how much money you think that your business generates verus how much money actually lends to your account? We are pretty sure you did! And the reason for that is because most SMEs are well aware of...
If you think about investing or bring investors to your business, you may need to learn how to calculate the weighted average cost of capital (WACC) Why? Well, as we often say here at Freenvoice: When you don’t know your numbers, you can’t tell how much money...
The times interest earned ratio (TIE) is one of several figures that you can use to determine a company's debt ratio or your business's solvency. So that's a handy number to know, right? In this post, we'll explain what kind of information TIE can communicate...
If you’re considering an income property, it only makes sense to learn its value. Failing to calculate this correctly could result in a significant loss of your company’s investment capital. That’s why it’s important to understand what cap rate is, and how to calculate it. What...
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...