How to Create a Monthly Financial Report in 7 Easy Steps
Struggling with monthly financial reports? You’re not alone. They’re essential for tracking your company’s financial health, covering cash flow, budgets, and performance. But putting them together can be frustrating. Manual data entry, disorganized systems, and a lack of real-time updates often turn this task into a time-consuming headache. Read What is […]
Retained Cash Flow – How it Impacts Your Bottom Line + Examples
Retained cash flow happens after you cover the basic expenses. You use it to invest in your business, pay off debt, or handle surprise expenses. If you’re always feeling short on cash or relying too much on loans, you should pay more attention to retained cash flow. It’s about knowing where your money is […]
How to Calculate Flexible Budget Variance
So you’ve set your budget, mapped out your financial goals, and everything seems on track. But then, the reality hits. Your company’s performance doesn’t quite align with your expectations, and you’re left wondering why. That’s where flexible budget variance comes in. It’s like having a financial GPS that both tells you where you are and […]
Prepaid Expenses – The Complete Guide in Simple Terms
Paying for things upfront, like rent or insurance, is common in business. Managing those payments correctly in accounting terms is crucial. Prepaid expenses might seem straightforward, but they can have a big impact on your financial reporting and cash flow. Read: A Complete Guide to Financial Statement Analysis for Strategy Makers In this […]
What is Expense Recognition Principle
Imagine this: you sell 1,000 products in March but wait until April to account for the production costs. As a result, your finances show huge profits in March and a surprising dip in April – and here’s how you come to a confusion. That’s the essence of the expense recognition principle – making sure […]
Accrued Revenue 101 – Everything You Need to Know
Have you ever finished a job and wondered how to handle the money you haven’t been paid yet? If you handle this properly, it can make a huge difference and keep your finances in order. It’s especially important for businesses working on long-term projects or dealing with delayed payments. Read: A Complete Guide to […]
Everything You Should Know About Accounts Payable Turnover Ratio
The accounts payable turnover ratio is a key metric that shows how well your business manages supplier payments. It helps you understand if you’re holding onto cash too long or paying too quickly, which can affect your cash flow and financial health. In this blog, we’ll break down how to calculate it, what it […]
Why Net Working Capital Matters and How to Get It Right
Net working capital is one of the simplest ways to check if your business is financially healthy. But too many companies overlook it. If you don’t know whether you can cover your short-term bills or invest in potential opportunities, you might be setting yourself up for trouble. Read: A Complete Guide to Financial Statement […]
Budget vs Actual Explained: How Does It Affect Your Business?
Let’s face it – there’s hardly a financial plan that survives first contact with reality. And budget vs actual is where those plans get tested in the real world. The whole story is actually really simple: compare what you had planned to spend or earn with what actually happened. But the insights it provides? […]
The Definitive Guide to Margin Analysis
Are you leaving money on the table? Margin analysis helps you determine how much of your revenue turns into profit—and where you might be losing money. Many businesses focus on growing revenue but overlook the real drivers of profitability hidden in their margins. Read: A Complete Guide to Financial Statement Analysis for Strategy […]
