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  Advantages of Accrual Accounting for Business Every business is required to maintain books of accounts for keeping a track of its financial transactions.   Accounting and Bookkeeping are crucial to evaluating business performance and it is imperative that these tasks are carried out as per the accepted methods of accounting.   Broadly, globally there are two most prominent forms of accounting methods viz., Accrual method and Cash method.   The simplest differentiator between the two methods is that Cash method is easier compared to Accrual method while recording transactions, apparently because under Cash method the transactions are recorded as and when they actually happen i.e. when Cash is received or paid.   The Accrual method on the contrary caters to recording transactions as and when they are incurred for a particular financial period, irrespective whether they are realized or paid for.   The Accrual method is considered more transparent as it rep...

  Business Line of Credit in USA Every entrepreneur would agree that at some point of time they need access to working capital as their business starts growing. Every business being small or large, at some points experiences the need for makeshift capital when going through delayed customer payments or requiring addressing impromptu expenditures.   There may be situations for a short period of time when your business is witnessing a cash flow crunch.   In such situations, having accessibility of certain extra funds (albeit at some cost) can result into the difference between winding up your business or surviving through hard times.   So, when it comes to financing your business, entrepreneurs these days have a wide array of options.   A business line of credit is a popular choice for businesses. Read on to understand all you need to know about a business line of credit before getting started to apply for one. Business Line of Credit Unlike a traditional ...

  Guide to reading Financial Statements Financial statements are more like your business synopsis, giving you an insight into the flow of your money (in or out) and how much do you hold to sustain a business.   They are the type of reports necessary for you to make wise financial decisions for your business and absolutely inevitable when you need loans or funding to expand. This article is important, especially for all the newbies out there who have ventured on a business saga but do have concerns of how to read their business finances to be in control.   In this write up we shall visit the important parts of any financial statement and how can one interpret them. So, what are financial statements actually? Financial statements are the type of reports that encapsulate all your business financial transactions and related information into certain parts.   There are primarily three aspects of every financial statement – Balance Sheet, Income Statement (or Profit...

  Business Structures for USA: What suits your Business? Choosing your business structure as you set on your journey to make it as a successful entrepreneur is most commonly a dilemma for every start-up. The question as to what type of business structure would be most suitable for your type of business is crucial and it would be advisable to consider various factors based on your operational objectives before opting for the right business structure. In this article, we have attempted to simplify various business structures, trying to highlight their pros and cons, in providing an initial insight for what options you have while commencing a business in United States of America. To be upfront, there is not one type of business structure that fits all nature of businesses.   It all depends on what your vision to accomplishment is.   For starters, some of the basic questions that you should be asking yourself are:   1.      Will this be your S...