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How to Create an Annual Business Budget

Your company’s annual budget is an overview of your business finances — both current and future. It is an essential planning tool that allows you to see your financial health at a glance and chart a course for the coming year. If you’re like most small business owners today, you feel like you’re spending every […]

How Can My Seasonal Business Budget for Revenue Changes?

All seasonal businesses experience revenue challenges during specific months of the year. As an owner of a seasonal business, you have one of the toughest entrepreneurial jobs. You work to market and promote your products or services year-round while generating the bulk of your income in three to six months. A lot of seasonal companies […]

What Are Your 2021 Federal Tax Rates for Your Business?

Here we’ll give you a bit of insight into what small business tax rate you’ll be facing next tax season. In light of the Tax Cuts and Jobs Act of 2017, it’s no surprise that businesses are facing some changes when it comes to their tax filing this season.

How Does Payroll Financing Work?

Payroll financing works by funding a firm’s invoices and is typically known as invoice factoring or accounts receivable financing. During slower months, small or seasonal companies often lack the reserves to cover employee payroll.  Payroll financing provides these small business owners the capacity to pay employees even if their company struggles with cash flow issues.  […]

Do You Need a Detailed Business Plan to Apply for a Business Loan?

Your business needs a loan. Maybe you are just getting off the ground or needing capital to fuel an expansion opportunity or fund your next big project while waiting for customers to pay their invoices.  Whatever the reason, you will need to make a good impression to have a shot at a traditional bank loan. […]

What Are the 4 Main Components of Working Capital?

Working capital is essentially the difference between your company’s liquid assets and its short-term liabilities. It measures how much your business has on hand to cover day-to-day operations. You can use it as a metric to guide your growth and purchasing decisions. Potential creditors and business partners also consider working capital when judging a company’s […]

What Are the Three Main Ways to Categorize Business Financing?

Maybe you are just getting your business off the ground, or you are trying to boost the bottom line of an already-established company. You reinvest your earnings and dip into your personal funds to supplement sales, but sometimes that is not enough.  You need additional income for your operations, and you are not alone. According […]

How Do You Manage Working Capital?

Working capital—the measurement of a company’s liquidity and ability to cover its day-to-day operations—is fundamental to all businesses. When you subtract your firm’s current debts from its liquid assets, the number that remains is your working capital. Ideally, your company should have enough working capital to meet its obligations, plus some left over to cushion […]

Why Is Working Capital Important?

  Working capital is a barometer of your firm’s short-term financial health and can affect inventory, funding, and business longevity. It is vital to keep track of your business’s working capital to ensure you or your financial team sustain operational efficiency and company health. You may not discuss working capital every day, but this financial […]

What Is Minimum Working Capital?

Most company owners, banks, and financial managers agree that some working capital is necessary for a business to operate smoothly because it provides a buffer against declining revenue. Working capital is vital to ensure the lights are kept on, payroll is covered, and vendors are paid. You can measure it weekly, monthly, or yearly as […]