Small Business Encyclopedia

Category: Financial Management

Cash Float Accounts

Definition: A bank account specifically set up by a business owner to float money through from Business A to enhance the perceived value of Business B

Cost-Benefit Analysis

Definition: A process by which you weigh expected costs against expected benefits to determine the best (or most profitable) course of action

Assets

Definition: The value of any tangible property and property rights owned by a company less any reserves set aside for depreciation. Assets don't reflect any appreciation in value unless they're sold for the greater value.

Debt-to-Equity Ratio

Definition: A measure of the extent to which a firm's capital is provided by owners or lenders, calculated by dividing debt by equity. Also, a measure of a company's ability to repay its obligations. If ratios are increasing--more debt in relation to equity--the company is being financed by creditors rather than by internal positive cash flow which may be a dangerous trend.

Deductible Expenses

Definition: Expenditures for business items that have no future life (such as rent, utilities or wages) and are incurred in conducting normal business activities which a business owner may deduct from gross earned income for federal tax purposes

Break-Even Analysis

Definition: A technique for analyzing how revenue, expenses and profit vary with changes in sales volume

Budgeting

Definition: Establishing a planned level of expenditures, usually at a fairly detailed level. A company may plan and maintain a budget on either an accrual or a cash basis.

Intangible Assets

Definition: The assets you cannot touch or see but that have value. Intangible assets include franchise rights, goodwill, noncompete agreements and patents, among others.

Invoices

Definition: An itemized list of goods shipped or services rendered, stating quantities, prices, fees, shipping charges, etc. Also known as a "bill."

Payables Management

Definition: The administration of a company's outstanding debts, or liabilities, to vendors for purchases of goods and services made on credit

Undercapitalization

Definition: The condition that exists when a company doesn't have enough cash to carry on its business and pay its creditors

Net Worth

Definition: The amount of equity a company has, which is the difference between its total assets and total liabilities.

Free Business Tools

Forms

Forms

Download and customize these free forms:

Partnership Agreement

Cashflow Worksheet

Employment Application

Calculators

Calculators

Evaluate and analyze your financials:

Cash Flow

Starting Costs

Discounted Cash Flow

Ads by Google

Latest Articles

15 Ways to Get More ROI From Social Media This Month
Social Media

15 Ways to Get More ROI From Social Media This Month

Get your numbers up by being 'authentic,' using the right social channels and using paid promotions.
Sujan Patel
6 Little-Known Characteristics of Successful Entrepreneurs
Entrepreneur Mindset

6 Little-Known Characteristics of Successful Entrepreneurs

Who could have guessed that 'introvert' is one of them?
Neil Patel
5 Ugly Truths About Entrepreneurship
Survival Strategies

5 Ugly Truths About Entrepreneurship

The SBA says that only half of new companies survive 5 years or more. How resolved are you not to be one of them?
Jonathan Long
Rejoice! Instagram Has Finally Made Toggling Between Accounts a Thing
Instagram

Rejoice! Instagram Has Finally Made Toggling Between Accounts a Thing

Users with multiple accounts are stoked.
Wendy Frink
Women Raise More Money With Crowdfunding, Research Shows
Crowdfunding

Women Raise More Money With Crowdfunding, Research Shows

The difference comes down to the words female founders use, according to a UC Berkeley study.
Catherine Clifford
This App Helps Students Navigate the Road to Getting Their Driver's Licenses
Entrepreneurs

This App Helps Students Navigate the Road to Getting Their Driver's Licenses

In lieu of in-person classes, Aceable steers teens towards their driver's licenses via mobile app.
Lindsay Friedman
What People Really Think When They See Your Profile Picture for the First Time
Social Media

What People Really Think When They See Your Profile Picture for the First Time

Most won't admit it, but we humans are quick to form opinions based on something as shallow as a hat or the distance from the camera.
Liraz Margalit
4 Lessons Learned From This Year's Super Bowl Advertising
Super Bowl Ads

4 Lessons Learned From This Year's Super Bowl Advertising

From the Doritos and Heinz dogs to Lady Gaga's show-stopper, even the little guys can learn what and what not to do given promotional opportunities.
Jim Joseph
3 Steps to Bring Your New Electronic Product to Market
Product Development

3 Steps to Bring Your New Electronic Product to Market

Follow these tips to turn your concept of a brilliant new gadget into profit.
John Teel
10 High-Profile Brand Partnerships That Struck Gold
Partnerships

10 High-Profile Brand Partnerships That Struck Gold

Apple and Hermes, EVA Air and Hello Kitty and Covergirl and Lucasfilm are just a few companies that paired up for a win-win last year.
Jeff Lotman
'I Will Teach You To Be Rich.' Here's How One Man Continues to Make Good on That Promise.
Getting Rich

'I Will Teach You To Be Rich.' Here's How One Man Continues to Make Good on That Promise.

Be inspired by the rags-to-riches stories of three students of entrepreneurial guru Ramit Sethi.
Meiko Patton
4 Mistakes Your Social-Media Profiles May Be Committing With Job Seekers
Employer Branding

4 Mistakes Your Social-Media Profiles May Be Committing With Job Seekers

Are you putting your best face forward by using these platforms for conversations and connections?
Heather R. Huhman
6 Content Marketing Tips for Non-Sexy Industries
Content Marketing

6 Content Marketing Tips for Non-Sexy Industries

If you define your industry as 'boring,' here are some ways to spice up your marketing strategy and get noticed.
Samuel Edwards
Twitterverse Pounces on Tim Cook's Blurry Super Bowl Photo
Tim Cook

Twitterverse Pounces on Tim Cook's Blurry Super Bowl Photo

The Apple CEO got mocked for both his photography and products.
Carly Okyle
The Best and Worst Ads of Super Bowl 50
Advertising

The Best and Worst Ads of Super Bowl 50

Peyton Manning who? For us, the big game was all about the commercials. Which ones were a touchdown and which ones fell flat?
Kim Lachance Shandrow
More Articles

About Encyclopedia

No matter what business topic you're interested in, you'll find our category list is an easy way to navigate our small-business encyclopedia. From Accounting and Advertising to Location and Operations, every topic offers information on the terms that matter most. And if you can't find what you need here, our "Terms A - Z" list makes tracking down terms a snap.

Ads by Google