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What Are Your 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.
Business Line of Credit vs. Business Loan: What You Need to Know
There are several key elements needed for a successful small business: a dedicated proprietor, a solid business plan, a service or products that address a need in the market, and, perhaps most importantly of all…funding. Even if a business is successful from day one, proprietors may find it challenging to have enough cash on […]
What is Receivables Financing?
Chances are you’ve heard of accounts payable and accounts receivable; you might also be familiar with the term “receivables financing”, but not know exactly what it is or how it works. If that’s the case, you’re in the right place. To avoid any confusion, let’s start by reviewing some basic accounting terms. Accounts payable is […]
Balance Sheet vs. Income Statement: What’s the Difference? The Two Most Important Financial Statements for Your Business
As a small business owner, you know that tracking the health of your business is critical. In this article, we’ll discuss two of the most important financial statements for a business – the balance sheet and the income statement. We’ll examine how they are different and how others might look at the statements to determine […]
How to Find Working Capital
Your business is making money, you’re gaining more customers, and enjoying a steady stream of incoming cash. Perhaps you’re considering growing your team of employees, expanding your inventory, services, or product offerings, or taking additional steps to solidify your business’ impact on the market. But even with a consistent cash flow, your company needs to […]
What is a Good Profit Margin?
As a small business owner, your profit margin might feel like the clearest way to define your success. Considering how hard it can be to keep your head above water, especially in the early days of your venture, breaking even (or even making a profit!) can give you the motivation you need to continue pushing […]
How Do I Get a Business Credit Report: The Basics
Getting a business credit report is easy – if you know where to look. Like a personal credit report, the business version considers the most vital details of a business, including: Past payment history and collections Public filings Overall sales numbers Ownership and subsidiaries Number of employees Historical business operational data Industry classification […]
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 […]
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 […]
What is the Working Capital Formula?
Working capital is a metric used to quantify your company’s liquidity. In other words, it is the amount of money you would have on hand to run your business if you were to liquidate your assets to pay off your current debts. This calculation is an effective way to analyze your organization’s short-term financial health […]
What Happens if My Company Goes Bankrupt?
Opening and running a small business is risky even under the best of circumstances. Nearly one out of two new companies close their doors for good within their first five years, and the COVID-19 pandemic has generated new hurdles for struggling enterprises. According to an October 2020 survey conducted by Small Business for America’s Future […]
Can You Predict Your Business’ Financial Forecast?
Calculating financial forecasts can guide your actions and optimize your performance, setting the stage for further growth and success. But do you have an effective system in place to make these predictions?
So You Need to Create a Business Invoice? Here’s How (Including an Invoice Template)
Even though formats can change based on the type of invoice you’re creating, there are specific and important elements of an invoice that should be included in every invoice.
Top 8 Accounts Payable & Receivable Software for Small Business
Below is a list of the most affordable and easy-to-use accounts payable and receivable software programs available, giving small business owners one less thing to worry about while managing their company.
How to Read Financial Statements
A financial statement demonstrates how a business has utilized the funds it has received from stockholders and lenders. In this way, these statements speak volumes about the executive strategy and offer a sense of transparency for those who have infused their own funds into the business’ mission.
How to Create a Successful Business Budget
Along with your blood, sweat and tears, making sure your business is financially successful takes a lot of planning and number crunching.
Business Forecasting: Get Your Revenue & Growth Numbers Nailed Down
Whether you’re a veteran small business owner or just starting out, we can’t emphasize enough just how critical business forecasting is for your short-term and long-term prospects.