Accounts Receivable

What is meant by accounts receivable? Accounts receivable come into existence when a business offers products or services to its customers on credit. The amount of money that the customers owe to the company is written as an asset on the balance sheet. This asset represents the money that a customer has to pay to […]

Non Current Assets

If you are interested in the world of finance perhaps you´ve heard a few times the term Non Current Assets. If you want to expand your knowledge on this term, we encourage you to read the following article. What are non-current assets?   The assets that cannot be quickly converted into cash or cash equivalents […]

accounts payable

Accounts Payable

What is Accounts Payable and How to Manage Them? When a business purchases a service or a product from a supplier (not paying cash at the time), the payment amounts are recorded into the company’s financial statements and released when the due date states on the invoice (often 30 days later). The record of unpaid […]

balance sheet

Balance Sheet

What is the Balance Sheet of a Company? The balance sheet is the ‘statement of position’ of the company. The regular review and analysis of the financial position of your company is important to keep your business on the right track. Without the knowledge of the economic health and investment return of your company, it […]

net working capital formula

Net Working Capital

Net Working Capital (NWC) are all those short-term financial resources that your company needs to be able to continue day-to-day operations efficiency (resources to fund or support your operation), and thus avoid delays or disruptions. NWC consists of various current assets such as inventory, accounts receivable and cash and some current liabilities such as account payable. […]