All You Need to Know About Debt and Equity Capital

The Difference Between Debt and Equity Capital

You don’t need financial training to know that capital is needed to start a new business or grow an existing company. In this post, we will examine debt and equity capital, two most common routes for acquiring needed cash. These are so important because many entrepreneurs and business leaders lack understanding of which option to choose and the implications of each.

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Is Your Corporate Culture Limiting the Success of Your Business?

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Information technology changed the global environment and how we operate in our own companies. Does your culture still operate using pre-internet-world traditions or has it changed with the times? How can you tell?

Let’s start with the boss-worker relationship. Gallup surveys indicate only 13% of the global workforce engages at work. Much disengagement comes from the relationship between individuals and their boss. Perhaps it is time to evaluate your company’s boss-worker relationships and shed light on this disconnect.

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How to Make Sense of Your Cash Statement

You’ve attempted to read and understand your company’s cash statement and it doesn’t quite make sense. You’re not alone, many business owners and professionals lack a clear understanding of their company’s cash statement and generally how to analyze cash flow at their firm. Here’s how you can analyze your cash statement to help improve cash flow at your company.

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The Financial Statements—What are They?

Think of the financial statements as scorecards that collect the performance data of your company and report it to the owners (shareholders), managers and the government. There are three of them—the Balance Sheet, Income Statement […]

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Accrual Accounting

The need for accrual accounting arose because business has changed in the modern world. Go back several hundred years and we find that business transactions were conducted by barter or cash. In other words, each […]

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Cash Method Accounting

Cash method accounting is the alternative to accrual accounting. In accrual accounting, everything is recognized as the event happens, regardless of when cash is exchanged. The difference in cash method accounting is that everything is […]

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Revenue Recognition

When can a company recognize revenue? This question is often confusing for owners and managers of small to medium size businesses.  Revenue recognition differs depending on the nature of your business and whether you are […]

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Cost of Sales vs. Operating Expenses

Companies incur and record costs in running the day-to-day operations of the business. These costs are separated into two categories—Cost of Sales and Operating Expenses. Cost of sales may also be called cost of services […]

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Where do the financial statements come from?

Most people know from their own experience that finance is considered a difficult and confusing subject, especially for those who do not work with it every day. Few people know that the first balance sheet […]

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