Financial statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity of a company. Financial statements reflect the financial effects of business transactions and events on the company.
Statement of financial position, also known as the Balance Sheet, presents the financial position of an entity at a given date. It is comprised of the following
- Assets: Something a business owns or controls (e.g. cash, inventory, plant and machinery, etc)
- Liabilities: Something a business owes to someone (e.g. creditors, bank loans, etc)
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Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of a company.
Capital requirements will depend upon factors like cost of current and fixed assets, promotional expenses and long- range planning. Capital requirements have to be looked with both aspects: short- term and long- term requirements. The capital structure is the composition of capital, i.e., the relative kind and proportion of capital required in the business. This includes decisions of debt- equity ratio- both short-term and long- term. … Read more
Before you begin to set up your company you need to decide what your business will be about. Market research is essential, to know whether your business idea is viable and whether you can make it a success. You can get this information by setting up focus groups and surveys, as well as by analysing data online or pay professionals to do this for you.
Especially important when it comes to gaining finance for your company your business plan is also a great way of analysing your company’s success.
Things to include in your business plan :
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Bookkeeping is necessary in every business whether it is a small or large scale business. As a small business owner, following basic accounting principles is essential for success, record-keeping and financial analysis is key to not only monitoring your expenses, but to discovering new avenues of growth. In addition, it ensures you stay responsible for tax obligations to the government and to your employees.
Accounting closely monitors your accounts receivable to illustrate trends or behaviours in your customer base. It can also cut down on the costs you incur by pursuing late payers. Establishing a detailed budget to help discover … Read more
When an outsider looks for startup business, the first thing they notice is the trademark. A trademark is the identity of a business lies. It is the name and symbol under which a business undertakes its trade and commerce, which represents the company.
In India, trademarks are regulated by the Trade Marks Act of 1999. The Act aims to provide registration and better protection towards trademarks while preventing the use of fraudulent marks.
How to Choose a “Good” Trademark?
- The mark(s) should be easy to remember.
- It should be short and easy to spell and write.
- It may
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In India a business organization can take many forms such a LLP (Limited Liability Partnership), Private Limited Company, Public Company etc. On 7th January 2009 with assent of the President the Limited Liability Partnership Act, 2008 came into effect. LLP has been a successful business vehicle since then as it combines the benefits of a partnership with that of a limited liability company, making it a lucrative option for start-ups. It keeps personal wealth of partners safe and on the other hand it helps leverage the benefits of a partnership.
In Limited Liability Partnership a partner is not … Read more
Running your own business is often hard work, specially till you manage to build momentum and getting things moving smooth.
If you’re ambitious for your business, you won’t want to hang about. So here are nine growth strategies to help you get the most from your time and effort as a business owner or as an entrepreneur.
Before you give in to frustration, here is some advice that can help you to grow your small business successfully.
1. Patience Is Necessary
You’ll need to be patient. Contrary to what you see and hear, there is no such thing as a … Read more