For any business manager, securing capital is a critical hurdle. When it comes to financing businesses, there are two options to choose from.
Posts published in “FINANCE”
This post answers questions regarding internal cash control in a business. Specifically, how to account transactions related to working capital control.
Working Capital control is one of the most important task of the Finance Manager in a business organization. Every business must pay its daily expenses.
You cannot survive as a business manager, if you cannot manage your company’s cash flow. Here are five worst cash-flow mistakes of small businesses.
When companies need money, they have many choices of sources of finance. And, the choice they make can tell you more about the company.
This article explains basic accounting structures that exist in a business. The record to keep track in financial statements items is an account.
These four steps to manage cash flow will help you keep track of the money coming in and out of your growing company.
Internal Rate of Return (IRR) shows the actual percentage rate of return from the investment considering discounting.
Discounted Payback Period shows the time needed to earn enough profits to repay the original cost of the investment considering discounting.
Net Present Value (NPV) shows the numerical cash value return from the investment project with taking discounting into consideration.
Discounting is the process of bringing to the present value the future Net Cash flows that will occur during the lifetime of the project.
Compounding is the process of accumulating interest in an investment over time to earn more interest. Interest remains in the bank.
Average Rate of Return (ARR) gives the annual Net Cash Flows (or net profits) from a project as a percentage of the initial cost of the investment.
Payback Period (PBP) gives the length of time required for Net Cash Flows (or net profits) to pay back the initial capital cost of the investment.
Appraising investments is a part of the Capital Budgeting Cycle. Investment Appraisal helps to determine the best investment for a business.
No professional business manager can afford to ignore other qualitative factors of Investment Appraisal in addition to quantitative factors.