Accounting Terms for Financial Business Literacy

What Is Debt Snowball?

Lately, it seems that the majority of people and businesses have accumulated a certain level of debt. This experience is rather usual, especially for those in the middle class. You have all of these needs that you want to achieve, and yet you do not have the money for it. This is why we settle …

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What is IR35?

In order to address “disguised employment”, the HM Revenue & Customs introduced the IR35 or the “off-payroll working rules”. IR35 evaluates whether a business’s contractors are employees or self-employed whenever they take on work for clients.    If the contractor is “inside IR35”, the government sees the person as an employee. Therefore, they face an …

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What Is a Liability?

When doing any kind of business, you need to understand that all of your moves will involve some sort of risk. The world is already a vicious place, but adding money into the mix makes it even more dangerous. Whether you are a start-up or an established mega-corporation, there is still a chance that everything …

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What is a Dividend?

A dividend refers to the reward that a company gives its shareholders depending on its growth. This may be given in various forms, like cash payments and stocks, depending on what a company’s board of directors and its shareholders agree on. While it is not required for a company to pay a dividend, it is …

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What is Net Current Assets?

Net Current Assets, also known as the Working Capital, is an essential financial metric calculated by simply subtracting a company’s Current Liabilities from their Current Assets. The Net Current Asset is used to give business owners, investors, analysts, and lenders a pulse to quickly evaluate a company’s financial health. It shows how much a company …

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Profitable Business Ideas That Increase Profit Margins

Profit Margin is a commonly used profitability ratio for measuring a business’s financial health or its ability to make money used by creditors, investors, and business owners. It is also used as an indicator of the management’s skill and the business’s growth potential. A business arrives at the Profit Margin by dividing its income by its …

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What is the Difference Between Revenue and Profit?

Revenue is the total income a business earns from sales of products and services. Profit, on the other hand, is the amount left from your revenue after you have deducted all expenses. Simply put, revenue is also known as your sales, while profit refers to your bottom line.   Both profit and revenue refer to …

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What Is Turnover?

From the outside, owning a business may seem like an exciting and easy way to generate an income. Equipped with the internet’s limitless capabilities, starting your own enterprise is as easy as creating an email account. You just need a platform, reliable product supplier, and marketing techniques to carve out your name in your chosen …

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