What's it: A financial objective is a target or something we want to achieve through the finance department. They guide the finance department and its team to make decisions and focus on relevant activities to achieve objectives. Financial
Accounting and Finance
Accounting and Finance Department: Roles and Links with Other Departments
What's it: The accounting and finance department is concerned with planning, managing, and controlling financial resources, including managing records and information related to business finances. In addition, the department is responsible for
What are the Invoice Factoring Advantages and Disadvantages
The invoice factoring service has several advantages and disadvantages. Allowing the company to get cash immediately is its main advantage. However, using the services of a factoring company requires the company to spend money to pay fees. What
Invoice Factoring: Meaning, Importance, How it Works
What's it: Invoice factoring is a financing arrangement in which a company sells its invoices receivable to a finance company (called a factor or factoring company) in exchange for liquidity. The factoring company will pay cash from the invoice
Breakeven Point: How to Calculate, Benefits, Pros, Cons
What's it: The breakeven point is the point where revenue equals total costs. At that point, the company's sales level is not high enough to profit but not low enough to incur a loss. Why is the breakeven point important Businesses use
Company Funding: Purposes, Types of Sources
What’s it: Company funding is an injection of money from funders to companies. Sometimes, we also refer to it as corporate financing. In general, two sources of funding: equity and debt. We refer to equity funders as stock investors,
Operating Leverage: Why It Matters, How to Calculate it
What's it: Operating leverage shows you the extent to which a company's operating costs are dependent on fixed operating costs. If the company has high leverage, it shows that the company has a significant proportion of fixed costs. Meanwhile,
Activity-Based Budgeting: Meaning, Steps, Simple Examples, Pros, Cons
What's it: Activity-based budgeting is a budgeting method by quantifying only key business activities and their associated costs. In the process of allocating money, the company maps critical activities to achieve company goals. Then, the
Full Costing: Meaning, Components, Pros, and Cons
What's it: Full costing is a cost accounting technique that considers all the costs of producing a single unit of product, whether fixed or variable overhead. These costs include direct material costs, direct labor costs, and all overhead costs.