Why the Quick Ratio is an important tool in your forecasting arsenal
The quick ratio or acid test is a great KPI to understand your ability to cover short term debts – but what role does it play in forecasting?
Balance Sheet
A Super Simple Guide to Goodwill in Accounting
If you’re new to accounting, goodwill isn’t what you expect it to be (at least for me it wasn’t!). Goodwill can often be the cause of many headaches and arguments in the buying and selling of a business, this is all down to its nature, find out what that is inside!
Accounts Payable vs Receivable | How do they interact with cash flow?
Accounts payable and receivable are one of many accounts found on the balance sheet. In this article we look at what they are and the differences between them. Finally, we examine how they interact with the other two key financial statements, the cash flow and profit and loss.
What are Positive and Negative Working Capital? (and why they’re important)
Working capital is a figure that is essential for business growth, it keeps the cash cycle moving and allows you to pay suppliers and invest in the business. But what are positive and negative working capital? and how important are they for your business? We take a closer look in this article.
Fixed Assets vs Current Assets: What’s the difference?
If you’re new to the balance sheet, understanding each of its components can seem like an overwhelming and complicated ordeal. So, today we’re going to tackle some of the most frequently misunderstood components of the balance sheet, fixed and current assets. First, we’ll break down fixed and current separately and explain their categories, then we’ll draw the differences between the two.
The Balance Sheet Layout Explained in a Super Simple Example
A balance sheet is an essential tool used to show the value of a business at a specific point in time. In this coffee-infused article, we journey to understand the balance sheet using a coffee shop as an example!
Free Balance Sheet Template – Excel & Google Sheets
Get a free balance sheet template on us! Using a simple, easy to understand structure with automatic formulas, charts and an explanation of each line, if you’re looking to build a balance sheet forecast, there really is no better place to start than with our template, you’ll be forecasting your balance sheet in no time!
Why Does a Balance Sheet Need to Balance?
The balance sheet is packed with financial information crucial to understanding the health of your company. However, for a lot of people, it’s one of the hardest financial statements to get to grips with. Even the most fundamental pillar of the balance sheet, why it needs to balance, eludes many of us.
Gearing Ratios Explained – How to Use Leverage Analysis for Your Small Business
In the final part of the KPI and Ratio series we’re looking at gearing ratios, which reveal the inherent risks in different capital structures. If you’re new to the concept of gearing then this is a great primer for these important ratios.