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When your business is just starting out, keeping track of the money can be a challenge. Without careful budgeting and accounting, it’s easy to lose track of how much money you have, where it’s going, and what cash you should have left on hand at any given time. In fact, many small businesses fail because they are not able to keep their books organized and understand their financial situation. 

Today’s increasingly digital world has transformed how businesses operate, buy and sell goods, and pay for services. The rise of the Internet of Things (IoT), artificial intelligence (AI), and other digital innovations have changed the way businesses process invoices, purchase orders, contracts and more. This also impacts the entire procurement and payment cycle; after all, a company must first identify what they need before they can purchase it. And while business processes have been streamlined in nearly every department over the years, many are still unnecessarily complex—and in some cases even redundant. The acquisition and payment cycle is one such area that could benefit from greater simplicity.

Accounts receivable is an essential part of any business. This financial asset lets you sell your product or service and then receive payment for it in the future. But wait; there’s more, because a key performance indicator is how long that future might be. An outstanding receivable balance, which is the money customers owe your company, can make you anxious about whether they are going to pay you back at all. An aging report will help you understand how much time you have to collect from your customers and offer them discounts if they pay within a certain time frame. 

Accounts payable turnover is one of the most widely used financial metrics for monitoring and measuring operational efficiency. A high accounts payable turnover ratio typically indicates that company vendors are being billed and paid faster than the average in your industry, which means you can get the cash from selling inventory sooner. A low accounts payable turnover ratio tends to indicate longer payment terms or difficulty getting vendors to accept your checks or credit terms. 

Keeping your books organized and stress-free is not an easy task, especially as a small business owner. There are so many things you have to remember and track, which can get overwhelming at times. The best way to manage all the details is to implement some simple and proven principles that will help keep your accounting as stress-free as possible. Working in your business instead of on it is the first step to keeping your accounting as stress-free as possible.

Financial planning is not a one-time event. It’s an ongoing process that involves making financial decisions every day. Whether you’re just starting out in your career or about to leave the workforce for retirement, it’s important to understand how money works and how you can manage your personal finances to improve your quality of life. In an ideal world, we would all have sufficient resources to cover any unexpected expenses and maintain a comfortable standard of living throughout our lifetime.

Whether you’re an employee or self-employed, you will most likely need to deal with income tax at some point. Income taxes are a standard practice and the IRS requires all citizens to pay taxes on their earnings. If you’re not automatically being deducted for your taxes, there’s probably a good reason why. Most people get an annual W-2 from their employer, which outlines how much they earned and how much they owe in taxes. There are various deductions available that can help reduce your tax burden, but it’s important to understand the rules before filing or you could end up owing more than what’s recommended. 

In the past, if you wanted to buy a home with an initial deposit of less than 20 percent, you'd need to take out a high-ratio loan. These mortgages have high interest rates - generally around 9% - and that's because they're riskier for lenders. If the value of their collateral drops below the loan amount, lenders can lose more money than they originally invested. Fortunately, in this post-2008 world, stricter regulations on banks mean that getting a high-ratio loan is no longer as risky as it once was. It’s still important to understand what these loans entail before taking one out or extending them to your own potential buyers.

Your credit score may be the culprit. While it’s not an exact measurement of your financial responsibility, a credit score can reveal how you handle money and other risk factors that lenders use to determine whether or not you’re a safe bet. In the United States, almost all lenders use the Fair Isaac Corporation (FICO) score as their primary measure of your creditworthiness.

In accounting, there are specific rules for reporting costs and profits. In economics, it’s more about the general theories around profit and costs to help companies grow. Both are critically important, but they serve a different purpose. Understanding the difference between accounting vs economic profit is a key part of understanding how businesses work. There is a lot of information out there about business profits and costs. Unfortunately, much of it is not clear or direct.

Refinancing your mortgage can be a great way to get access to cash from your home equity and put it to work for you. Refinancing can also be an opportunity to get a lower interest rate, extend the term of your loan, or both. Refinancing may not be right for everyone, but if you’re among the majority of homeowners who could benefit from doing it, it pays to know all the different ways you can do so.

The covenantal accountability movement has come a long way in the last decade. Today, we are seeing more and more churches begin to adopt formal codes of conduct that outline the expectations for membership. These codes often contain stipulations pertaining to adherence to doctrinal standards, regular participation in church services and practices, and abstinence from certain behaviors.

A mortgage is the biggest financial commitment that most people will make in their lifetime. Because of this, it’s important to understand how a loan works. Reducing the cost of financing your home is an important factor when deciding which mortgage you should choose. Understanding loan structure and its impact on monthly payments can help you make the right decision for you and your budget. There are two primary types of mortgages: fixed rate and variable rate loans.

Getting a loan can seem like a complicated process. Once you determine you need money to make an important purchase, getting it seems like the hardest part. But with some preparation and knowledge of your options, getting a loan is actually pretty simple.

If you’re starting a business or growing your small business, chances are you’ll need working capital to finance operations. You might think you won’t qualify for a loan due to your smaller balance sheet and lack of personal assets such as real estate or a car. But that doesn’t mean you can’t get capital for your project.

Most people don’t know the real cost of renting, but if you do, you can negotiate a lower rent or find a cheaper place to live. By knowing the average rent in your area, you can also know if you’re being overcharged for your current rent. Before you sign a lease for a new rental property, it’s a good idea to find out how much similar rental properties in the area are charging. If you can find a landlord who is charging below average rent, you might be able to negotiate even lower rent. It never hurts to try.