Invoice Financing vs Invoice Factoring: Whats the Difference?

Invoice discounting is generally more popular with established businesses and businesses with a higher turnover. Advantages of invoice factoring If your business uses invoice finance, you can spend the cash on anything from paying staff wages to developing your growth plans. And as your revenue increases, the availability of finance for working capital does […]

Lessee vs Lessor: Differences, Accounting, and More Explained

Understanding the role and responsibilities of a lessor is crucial when entering into lease agreements. By fulfilling their obligations and protecting their interests, lessors can establish a mutually beneficial relationship with lessees while effectively managing their assets. From a legal perspective, the lessor holds certain rights over the asset. They possess the power to initiate […]

Revenue Recognition: What It Means in Accounting and the 5 Steps

Certain businesses must abide by regulations when it comes to the way they account for and report their revenue streams. Public companies in the U.S. must abide by generally accepted accounting principles, which sets out principles for revenue recognition. This prevents anyone from falsifying records and paints a more accurate portrait of a company’s financial […]

Understanding and Calculating the Debt-to-Equity D E Ratio: A Guide

As ABC’s debt to equity ratio of 2.57 indicates, the corporation is using a large amount of creditors’ money in relation to its stockholders’ money. We would say the company is highly leveraged and that could be a factor in whether the corporation can borrow more money if needed for an emergency or economic downturn. […]