Category: Finance

Interest on receivables, also known as receivable interest or late payment interest, refers to the additional amount charged or earned when a customer or client delays payment for goods or services beyond the agreed-upon payment terms. In business transactions, it’s common for companies to provide credit terms to their customers, allowing them a certain period… Continue reading Interest on Receivable

MSME stands for Micro, Small, and Medium Enterprises. It is a classification used by governments and organizations in various countries to categorize businesses based on their size and financial metrics. The specific criteria for classifying businesses as MSMEs can vary from one country to another, but the general idea is to provide a framework that… Continue reading Micro, Small, and Medium Enterprises

As per the Kerala Municipality Act 1994, professional tax is levied on every individual’s income, including lawyers, Chartered Accountants, entrepreneurs, etc. However, the amount of tax payable varies depending on your income slab as set by the state government. According to the Income Tax Act 1961, the total amount of professional tax you pay in… Continue reading Professional Tax in Kerala

Several tax compliance software solutions were widely used in India to help businesses and individuals meet their tax obligations. However, the popularity of specific software solutions may change over time as new products emerge and existing ones evolve. Here are some well-known tax compliance software solutions that were commonly used in India: Tally ERP 9:… Continue reading Tax compliance software solutions used in India

Management accounting provides financial and non-financial information to managers to help them make informed decisions about the business. The main functions of management accounting include: Communicating financial information: Management accountants gather and analyze financial data from the business’s financial statements and other sources, and then communicate this information to managers in a way that is easy… Continue reading How Management Accounting Works

Nonprofit accounting is a specialized branch of accounting that focuses on the unique financial reporting and management needs of nonprofit organizations, such as charities, foundations, religious organizations, and social service organizations. While many accounting principles apply to both for-profit and nonprofit entities, there are specific accounting practices and standards tailored to the nonprofit sector. Here… Continue reading Nonprofit Accounting

Supply chain finance, also known as supplier finance or reverse factoring, is a financial strategy that optimizes the cash flow and working capital of a supply chain ecosystem, which typically includes buyers, suppliers, and financial institutions. The primary goal of supply chain finance is to improve the financial stability of all parties involved in the… Continue reading Supply Chain Finance

In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economic of scale to… Continue reading Marginal Cost

Adjusting entries are accounting entries made at the end of an accounting period (typically monthly, quarterly, or annually) to ensure that the financial statements accurately reflect a company’s financial position and performance. These entries are necessary because not all financial transactions are recorded in real time. Adjusting entries fall into two main categories: Accruals: Accrued… Continue reading Adjusting Entries

Credit and debt management are critical aspects of personal finance. Effectively managing your credit and debt can have a significant impact on your financial well-being. Here are the key components of credit and debt management: Understanding Credit: Credit Score: Your credit score is a numerical representation of your creditworthiness. It is used by lenders to… Continue reading Credit And Debit Management