Business Guide for Beginners

Business Guide for Beginners

By Viktoria NedelchevaBusinessEntrepreneurshipManagement
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Business Guide for Beginners episodes

  • Startup Costs - Tax Deduction
    In this episode, I want to talk about initial startup costs and how they can affect your tax bill at the end of the fiscal year. If you properly identify, report, and handle your startup costs, your business will benefit from them.
    Startup costs are all the expenses you incur to turn your business idea into an active business. We can say that they're previous expenses that your business accumulates before it goes to market. Of course, every business has its own startup costs. However, there are some general costs that all businesses should be aware of.
    5 min
  • Review of Cloud Accounting Software - Zoho Books
    In this episode, I’ll be talking about Zoho Books and how your business can benefit from it. It would be an interesting review. If you’re interested, keep listening.
    The recording, analysis, and interpretation of financial data and transactions are all part of accounting. It's the manner in which an organization tracks its business. Accounting involves a wide range of activities to capture a company's entire financial picture, which can sometimes be challenging to keep track of. It is a complicated and time-consuming manual task. Accounting software, on the other hand, can make these steps easier, giving business owners more time to manage and implement their plans.
    6 min
  • Wave Accounting Software - Review
    In this episode, you'll become familiar with Wave accounting software.Wave can take the stress out of balancing your business's books, separating your business and personal expenses, and prepping your business for tax season. Wave ensures you are equipped with the right accounting software to do more than just basic bookkeeping. You can effectively analyze the financial health of your business, find ways to generate more profit, and move forward with your business plan.Wave helps you understand how money flows in and out of your businesses. It replaces the time-consuming method of collecting receipts in a drawer and manually tracking revenue and expenses in a spreadsheet or with pen and paper.It helps you quickly categorize transactions and generate financial statements. These include cash flow reports, balance sheets, profit and loss statements, and expense breakdowns.‍Wave accounting software is simple, userfriendly, reliable and secure. Using Wave accounting software, you can easily manage your business cash flow and be ready for tax time. You can access your account anywhere, any time. All you need to do to get started is to set up an account, connect your bank account and keep track of your business transactions and cash flow.
    4 min
  • Balance Sheet - How To Read It - Business Value
    A balance sheet can be presented in a variety of ways. However, all balance sheets, regardless of structure, have the same line items. If you can read and comprehend one of them, you can read them all.When reading the balance sheet of your business, the higher the owners’ equity, the better. It means your business owns more than it owes. You can use the balance sheet to assess your business’ equity in a specific moment, but you can also compare year-over-year changes to assets and liabilities to see how and why your business value has changed over time.Let me give you a few examples, to make things more comprehensible.We assume, in 2022, your business’ assets increased by $20000, from $190000 to $210000. Also in 2022, your business paid off a loan, reducing its liabilities by $10000, from $85000 down to $75000. Previously, the owner’ equity would’ve been $105000 ($190000 less $85000). The new equity would be $135000. We see an increase of $30000—helped by a growth in assets and a reduction in liabilities.We suppose, in 2022, your business’ assets decreased by $9000, from $160000 to $151000. Also in 2022, your business paid off a loan, reducing its liabilities by $5000, from $26000 down to $21000. Previously, the owners’ equity would’ve been $134000. The new equity would be $130000. We see a decrease of $4000 — helped by a decrease in assets that is greater than the reduction in liabilities.Let's walk through one more example.We suggest, in 2022, your business’ assets decreased by $9000, from $160000 to $151000. Also in 2022, your business paid off a loan, reducing its liabilities by $9000, from $26000 down to $17000. Previously, the owners’ equity would’ve been $134000. The new equity would also be $134000. We see that the value of your business would stay the same because the assets increase and liabilities decrease with the same amount.You see what valuable information you can extract from your balance sheet even if you are not a financial expel expert. Having the skills to read and understand your business’ balance sheet will help you a lot when making decisions.
    4 min
  • Balance Sheet - Ratio Analysis
    There’s a lot more you can learn from the balance sheet, apart from balancing assets and liabilities. It is used to calculate ratios that show the liquidity, efficiency and financial structure of your business. In this episode, I’ll take a look at a few of these ratios.

    The first ratio, I’ll be talking about is known as current ratio. The current ratio is defined as total current assets divided by total current liabilities.

    The next ratio is called the quick ratio. This defines your business’ ability to meet its short-term obligations while making the best out of its liquid assets. The quick ratio is equal to the sum of cash, cash equivalents, short term investments and current receivables divided by current liabilities.

    The third ratio I’d like to mention is the asset turnover ratio. It tells you about the efficiency with which your business utilizes its assets. It shows if your business can generate sales from its assets by comparing net sales with average total assets.

    The Inventory turnover ratio is another key ratio which indicates the number of times your business sells and replaces its stock during a given period of time.

    And last, but not least, you can use the balance sheet to calculate debt-to-equity ratio. This ratio is equal to your business’ total liabilities divided by the owner’s equity. The debt-to-equity ratio helps investors or bankers to decide if they want to lend money to your business.

    In conclusion, I can say that the balance sheet is an informative document. Therefore, investors and creditors give a look at it and its ratios for getting detailed insights about the business and making right decisions.
    5 min
  • Balance Sheet - Structure
    In this episode, I’ll be talking about balance sheet. The balance sheet is one of the three core financial statements that you use to evaluate your business. It provides a snapshot of what your business owns and owes as of the date of publication. Based on the fundamental equation: Assets = Liabilities + Equity, the balance sheet presents your business’ total assets and how the assets are financed, either through debt or equity. It is divided into two sections. The left side of the balance sheet outlines all of your business’ assets. On the right side, the balance sheet outlines your business’ liabilities and owners’ equity.Balance sheets vary from business to business and from industry to industry. However, there are several items that are almost always included in common balance sheets. These are: current assets, long-term assets, current liabilities, long-term liabilities, and equity.
    6 min

About Business Guide for Beginners

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This podcast will help you become aware of the most important business, accounting, and financial topics you need to be familiar with.