Rayvat Accounting

When a company generates profit, management can pay out money to shareholders as cash dividends or retain earnings to reinvest in business. Reinvestment could go toward any number of things that might help business. It could be used to fund acquisitions, build new factories, increase inventory levels, establish larger cash reserves, reduce long-term debt, hire more employees, research and develop new products, or purchase new equipment to increase productivity. Company could also choose to buy back its own shares, which might have the long-term benefit of increasing the company's market value. Because there will be fewer shares outstanding, company's per-share metrics like earnings per share and book value per share could increase and make the company's stock more attractive to shareholders. Retained Earnings Definition Retain Earnings, on the other hand, are sub-element of shareholders ' Equity. As explained above, in the Equity section, you can see invest...

To progress and develop, a business necessarily needs to make a profit. Thus, accounting as a whole is essential for analyzing investment data in order to calculate whether the turnover is greater than the expenses. In addition, keeping a rigorous and regular accountancy is necessary for the excellent management of a business. However, the best methodology to adopt to guarantee the perfect development of your company and especially to avoid bankruptcy is to have you accompanied by accounting experts. Find out here why accounting holds a special place in your business. What is accounting for? The general accounts of a company make it possible to record the costs of the operations carried out and to record in detail all the resources that the latter has and everything it owes. In other words, it offers the possibility of drawing up a chronological list of the different inflows and outflows of investments made by a company. It is about listing: Sales and all resources; Expenses paid and a...

  What does it mean to finance an asset? Asset financing refers to the use of a company's balance sheet assets, including short-term investments, inventory and accounts receivable management , to borrow money or get a loan. The company borrowing the funds must provide the lender with a security interest in the assets. Intangible assets are the valuable property that is not physical in nature. They include patents, trademarks, and intellectual property. What is an Asset Based Loan? Asset based business lending (ABL) is a types of commercial financing in which funds are provided after they are secured with assets on a company’s balance sheet. Such asset based loan collateral may be accounts receivable, commercial real estate, equipment or other business assets. Asset based lending usually comes in two types of facilities: term loans and lines of credit, but are also available in other forms like factoring, merchant cash advances and ACH financing. Factoring, cash advances and ACH an...

Every business needs to have a revenue target which they need to fulfill within a given time frame. There may be deviations from the path to achieving the objective, but eventually, we can attain the goal if we have a specific plan. The path or road map that we need is a financial budget, and it is indispensable for the prompt and long-term success of our business. We can understand the bigger picture and prepare ourselves for any business challenges down the road.  What Does a Budget contain? A budget gives us a snapshot of the revenues versus the expenses incurred by our business for a given period which could be a month, quarter or a year. This is our Cash Flow Management . The Best Time to Create a Financial Budget The right time to prepare a financial budget would be now! The budget should cover a minimum time frame that gives us enough insight into the future. A ballpark figure for the time frame would be 12 months so that we can get a perspective of the future busi...

Many businesses who seem to be doing well in terms of sales struggle to meet their financial obligations. This has to do with poor Cash Flow Management . Indeed, the Small Business Administration (SBA) says most new businesses fail within the first 10 years due to poor cash flow. Without good cash flow, your business faces bleak times ahead and this is a good reason to consider Accounting Outsourcing . Simply cash flow is king in any business. How to Deal With Cash Flow Emergencies If your business faces cash flow shortages and you can’t pay bills or meet other obligations, it is important to have a fall back strategy. Your plan should help you overcome the challenge and not put you in a deeper debt hole. Some of the strategies to consider include when dealing with cash flow emergencies include: Carry out a cash flow assessment and prioritize payments Cut any expenses you can. Pay off smaller debts to increase cash flow. Leverage your good relationships with suppliers...

Somebody has rightly mentioned that cash is the king and without the green (i.e. Cash) a business cannot function smoothly. Some time we get confused between the terms i.e.   Cash flow   Vs.   Profit . Cash is necessary for daily operations i.e. For paying employee’s salary, incurring the operational costs, purchasing inventory and paying the taxes. Positive cash flow indicates that a company’s liquid assets are increasing which enable any company to settle down the debts, return the money to shareholders and create a provision to meet the future contingencies. At the same time profit is the surplus after all expenses are deducted from revenue. Improve profit reflects the overall picture of a business growth and on the basis of which tax is calculated. It has been observed that outsourcing firm becomes the best friend for company in the long run. Rayvat’s globally skilled team is competitive and suitable for any business process operations. The key benefit of...

For proper financial management of any business, proper Cash Flow Management is the key. In order to maintain liquidity and working capital, excellent cash flow management is the need of the hour, especially for startups and SMEs. It thus becomes imperative for businesses to forecast the cash flows to ensure that the business has enough liquidity at all times. Impeccable management of cash flow directly improves the business’ financial security. If the business has just started or is affected by the economy, proper Cash Flow Management is needed on a daily basis. If the business is established and profitable, then the statement can be prepared monthly. The Main Advantages of Preparing Cash Flow Statements are: Potential shortfalls in cash balances should be identified in advance for any shortfalls. This would help a business to have seamless cash flow as well as plan ahead and be prepared for contingencies. Arrange for proper cash flow and plan in advance for payme...