Remove Balance Sheet Remove Finance Remove Revenue Remove Small Business
article thumbnail

A Brief Look At Understanding Income Statements And Balance Sheets

YoungUpstarts

The two key documents are the income statement and balance sheet, though there are more that come into play like the cash flow reports. So why are these documents important, and what is the difference between the income statement and balance sheet? Why You Need Income Statements And Balance Sheets.

article thumbnail

Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

Large companies don’t acquire small companies for their financials. Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Pundits couldn’t agree how to analyze the sale of Instagram to Facebook.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Ways to Improve Your Business Financial Management

Up and Running

Ongoing financial planning and forecasting are critical for business growth. But as a small business owner, it can be difficult to do any of this thoroughly and efficiently. Maybe you’re not a numbers person or feel that it takes time away from you actually running your business. Invest in financial management technology.

article thumbnail

4 Reasons Why You Should Have An Accounting Process In Your Business

YoungUpstarts

Unfortunately, most small business owners are not accountants and find themselves neglecting this function completely. However, accounting is one area of your business you shouldn’t ignore. Accounting is commonly defined as “the process of recording past business activity.” Included in this list is the role of accountant.

CPA 100
article thumbnail

9 Steps to Handle Business Loan Rejection

Up and Running

On the other hand, some of these are not easily fixable so you’ll have to look for alternative solutions to your financing problems. Bankers use standard business ratios derived from your financials, including your Profit or Loss, ( Income Statement ), Balance Sheet , and Cash Flow Statement. Get a co-signer.

SBA 163
article thumbnail

Working Capital vs. Cash Flow: The Differences and How to Better Manage Them

Up and Running

Whether you’re a small business or a Fortune 500, good accounting must always be a priority. You can think about cash flow in the sense of personal finances as well as business. To that end, you must know how to read a balance sheet so you can calculate the ratio properly and make informed decisions.

article thumbnail

Rules of Thumb Business Valuation Methods Explained

Up and Running

For estimating the value of a business, the process involves applying a multiple to an economic benefit of a specific industry. Metrics such as discretionary cash flow or business revenue are used. When to use the rules of thumb for a business valuation? This is the most common multiple to value small businesses.