When a business purchases a service or a product from a supplier (but doesn’t pay cash at the time of the sale), the payment amounts are recorded into the company’s financial statements and released on the due date stated on the invoice (most often, 30 days later). The record of unpaid money and due invoices that […]
The balance sheet is essentially the “statement of position” of the company. The regular review and analysis of the financial position of your company is important in keeping your business on the right track. Without the knowledge of the economic health and investment return of your company, it is much more difficult to make wise decisions. As a business […]
The income approach is one the most used methods to estimate the value of a business. Within this approach, there are two main methods, the discounted cash flow method and capitalization of cash flows method. In this post, we will take a closer look into how this approach works and what it means. What is the Income Approach? […]
If you’re interested in the world of finance and business valuations, you may have periodically heard the term “asset approach”. The following article breaks down what it means and will expand your knowledge on this interesting topic. Using an Asset Approach to Value a Company It’s understandable if you have no idea how much your […]
Valuing goodwill can be a tricky one, and it’s likely a bit misunderstood. However, it’s one of those important components in the valuation of a business that simply can’t be overlooked. In this article, we’ll look at some of the essential components of goodwill so that you can get a better understanding of how goodwill […]