Many small businesses start off strong with a solid business plan, an impressive product, sufficient funding and a growing customer base. Then, somewhere along with the way, the business stalls, ...

Goodwill is an accounting measure of a business's popularity and strength in its market. While goodwill's value on a company's books may be decreased due to market conditions, the only way this asset ...

When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

Tracking your cash in and cash out is an important part of running your business. Learn how to calculate the flow. Many, or all, of the products featured on this page are from our advertising partners ...

In order to determine income using generally accepted accounting principles, you take the revenue that a company recognizes for a specific period and subtract the cost of the goods or services that ...

Accrual basis accounting is typically the preferred method, but cash basis accounting may work for very small businesses. Many, or all, of the products featured on this page are from our advertising ...

Effective cash flow management is critical to running a successful business. However, many companies overlook this fundamental principle, focusing primarily on revenue under the assumption that ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Katrina Ávila Munichiello is an experienced editor, ...

One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a ...

Most businesses handle their accounting on an accrual basis. What is accrual basis accounting? It’s the practice of recording transactions at the point of origination, even if no money changes hands ...