Bookkeeping

The debt-to-asset ratio, debt-to-equity ratio, and interest coverage ratio are great tools for analyzing the debt situation of any company. Looking at the raw number on the balance sheet won’t tell you much without context. It is a great practice to analyze the debt using the above ratios and read through the debt covenants to understand each company’s debt situation. Generally, most investors look...

The single-entry system is primarily appropriate for small enterprises with simpler financial transactions. While it can be used to track basic income and expenses, it may not be adequate for businesses with inventory that require detailed tracking of goods, cost of goods sold, and inventory valuation. Larger or more complex businesses, especially those with inventory, would benefit from the double-entry...

You can usually turn tools on or off, which can help you either simplify the user interface or maximize the functions. Sage 50 Accounting—also sometimes known as Sage accounting or Sage business cloud accounting—is a massive small business accounting application that's designed for desktop use. It's the most comprehensive accounting program we review, and it does more than what many small businesses...

The book value of equity will be calculated by subtracting the $40mm in liabilities from the $60mm in assets, or $20mm. Remember that the markets are forward-looking and the market value is dependent on the outlook of the company (and industry) by investors. Next, the “Treasury Stock” line item captures the value of repurchased shares that were previously outstanding and available to be traded in the...

It’s perfectly acceptable to broaden both frameworks’ applicability beyond your roadmap. The Golden Circle was introduced by leadership specialist Simon Sinek back in 2009 in his book Start with why. This helps a great deal to guide discovery and map out potential traps you might fall into after decisions are made. Of course, those three frameworks might be used in a group context also, no...