In today’s financial landscape, credit scores play a vital role in determining your creditworthiness and, consequently, your ability to borrow money, rent an apartment, or even get a job. A good credit score can open doors to better financial opportunities, while a poor score can be a significant obstacle. This blog will delve into the…
Category: Finance
How to Use Debt Management Ratios for Business
Introduction: You realize that your business needs to expand to meet clients’ demands or decide to benefit from available opportunities. But your funds do not match your need; what do you do? You borrow, debt becomes part of your business financing. Your financing structure becomes capital and external funds (debt). Wait, debt should not be…
How to Understand Asset Management Ratios
Introduction: Your business is improving; you are growing into success. You decide to invest in other assets to increase your revenues. But do you invest your money or borrow funds? Your money in long-term assets might affect your working capital,, and borrowing too much money increases financing expenses. To answer these questions or situations, you…
How to understand Liquidity Ratios
Introduction: In accounting and finance, a liquid asset means how easily an asset can be converted into cash without losing its original value. Therefore, if we look at the financial statements, we will review the balance sheet. In the balance sheet, a section of assets orders the account groups in order of liquidity. In this…
How to analyze your business
Understanding how financial ratios tell the story This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. Introduction: Owning a business is more than buying and selling, more than trying to sell services to clients. You must understand every aspect of the business. Every year,…
How to prepare your Management Section in a Business Plan
This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. Introduction: A business plan represents an important document for third parties to understand and possibly approve credit; you must complete all parts with relevant information. In this post, we will explore more into the business…
What is a certificate of deposit, or CD?
Use a CD to start your savings What is a certificate of deposit? A certificate of deposit, or CD, is a contract between you and your financial institution where you deposit a certain amount for a fixed period of time. For example, deposit $1,000 using a CD for x interest and for x months. The…
How to use a Savings Account for financial success?
Savings: First Step to Success Savings is the action of setting aside. In the financial world, you set aside certain amount of your funds. The idea to save means that you have for the future, for whatever plan you may have. How do you open a savings account? In the old days, people visited their…
How to Create a Sum of the Years Depreciation Schedule
Using Google Sheets function SYD( ) To setup a Sum of the Years Depreciation Schedule for your fixed assets, you need to list your assets (column A). Then, include the item’s cost (column B), include each asset’s useful life in years (column C). Last, determine any residual value (optional), if not include $0 (column D)….
How to Improve your Credit Score
This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. What is a credit score? A composition of values being reported by lenders that gets weighted based on five categories, and a three-digit number is calculated. This calculated number becomes your credit score. Easy, right?…