Data & Finance for Work & Life
There’s a blurred line between “personal” and “business” financial management software (FMS). Understanding this will help you make a good choice. Most entrepreneurs run sole proprietorships or disregarded LLCs, so business and personal expenses like gas and phone get mixed together. You could use two apps, but shouldn’t your financial management software support the way […]
Top 27 Financial Management Software (List for 2023) Read More »
The best portfolio management software (PMS) focuses on one of two disciplines — advisors or wealth managers. >> If you’re an individual, check out our OTHER ARTICLE (opens in new tab). << There’s no one-size-fits-all, but if you know what you need and what you’re willing to pay, the buying process will be much smoother.
9 Best Portfolio Management Software for Advisors Read More »
Everyone knows companies earn income by selling products and services, and some people know companies can earn income by selling assets for more than their book value (gains). However, few people outside the world of finance know that companies earn income on changes in market conditions such as foreign exchange rates and stock prices. When
Other Gain: Definition, Examples, Synonyms & Journal Entries Read More »
If money makes the world go round, debt is the oil on its axis. Debt allows companies to buy large assets that would otherwise be inaccessible, and assets allow companies to generate profit through the sale of products and services. But not all debt is equal. Some of it is short-term, some long-term; some of
Total Debt: Definition, Formula & Step-by-Step Examples Read More »
If you’re like most people, you carry a debit card, bills, and spare change. While debit cards are the most common, we don’t refer to them as “cash.” Instead, we only call bills and spare change as cash. However, in the context of a business, “cash” is all of the above — it’s any form
Other Cash: Definition, List of Examples, & Cash Equivalents Read More »
The term “outflow” might seem like an overzealous way to say “payment,” but in accounting, it’s a critical concept. Accountants record purchases when they occur, NOT when cash is sent. This means they need a different word for cash movements. This article defines outflow and provides examples for different scenarios so you have a complete
Out Flow (Cash Outflow in Accounting): Definition & Examples Read More »
In business, the term “interest” can refer several concepts: interest paid or earned on lent money, an person’s economic stake in commercial activities, contractual participation of company executives/shareholders in affiliated companies (such as suppliers), and more. Other interest is a term used in financial reporting to denote the above concepts when they are not significant
Other Interest: Definition, Types, Examples, & Rates Read More »
Loans and interest are tricky, and so is calculating total interest on them. You have probably heard terms like “simple interest,” “compound interest,” and “APR,” but may be unsure what they mean. To understand and calculate the total interest, you need to know the type of interest and how it is calculated on a periodic
Total Interest: Types, Formula & Calculators Read More »
Most people have one job providing their primary source of income. If you have a side hustle or part-time gig, you have a second source of income. The same thing applies to businesses. While a company’s primary revenue stream comes from the sale of a core product or service, they can have “side hustles,” which
Other Income: Definition, Detailed Examples & Negative OI Read More »
Successful transactions end in purchase prices — a value agreed upon by two or more parties. The transaction may or may not involve a negotiation, but it always involves an agreed price. Commercial transactions are usually straightforward: one person sells a product, service, or asset, and another person buys it at face value. For example,
Purchase Price: Definition, Examples & Formulas Read More »
