Currency exchange, often referred to as foreign exchange (Forex or FX), is the global marketplace for trading one currency for another. The foreign exchange market is one of the largest and most liquid financial markets in the world, where individuals, businesses, financial institutions, governments, and central banks participate in the buying and selling of currencies.… Continue reading Currency Exchange
Category: Finance
When to issue a credit note
There are two types of credit notes: Those issued for incoming payments Those issued for outgoing payments What this therefore means is that a credit note can be both issued and received by a business. For small business owners, both types are common. There are several situations in which a credit note should be issued.… Continue reading When to issue a credit note
Blockchain and Accounting
Blockchain in accounting refers to the use of blockchain technology in various accounting processes, particularly in recording and verifying financial transactions. Blockchain is a decentralized and distributed digital ledger technology that allows multiple parties to maintain a shared record of transactions in a secure and tamper-proof manner. Here’s how blockchain is applied in accounting: Transaction… Continue reading Blockchain and Accounting
Why write an account payee cheque
A primary benefit of account payee cheques is that they might be the safest variant of cheques. That is because the written sum on the cheque can only be deposited into the account of the payee, ensuring that the chances of misuse are very low. After receiving the payment through this cheque, the payee can’t… Continue reading Why write an account payee cheque
Shareholder value and wealth creation
Shareholder value and wealth creation are fundamental concepts in corporate finance and investment. They revolve around the idea of increasing the value of a company and, in turn, generating wealth for its shareholders. Here’s an explanation of these concepts: Shareholder Value: Shareholder value, also known as shareholder wealth or shareholder value maximization, is the primary… Continue reading Shareholder value and wealth creation
Corporate takeovers
Corporate takeovers, also known as mergers and acquisitions (M&A), involve one company acquiring another company’s ownership or assets, or two companies combining to form a new entity. These transactions are a fundamental part of the business world and have significant implications for both the companies involved and the broader economy. Here’s an explanation of corporate… Continue reading Corporate takeovers
Methods used for calculating cost of capital
The cost of capital is a critical concept in finance and business decision-making. It represents the cost a company incurs when raising funds to finance its operations or undertake new projects. There are several methods used to calculate the cost of capital, and the choice of method depends on the specific context and the availability… Continue reading Methods used for calculating cost of capital
Cost -Volume-Profit Analysis
Cost-Volume-Profit (CVP) analysis is a financial management tool used by businesses to understand the relationship between costs, volume, and profits. CVP analysis helps companies make informed decisions about pricing, production levels, and sales strategies by providing insights into how changes in these variables impact a company’s financial performance. Key components of CVP analysis include: Costs:… Continue reading Cost -Volume-Profit Analysis
Rebate u/s 87A
A rebate under section 87A is one of the income tax provisions that help low income earning taxpayers reduce their income tax liability. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes. A Taxpayer can claim the benefit of rebate under section 87A for FY 2022-23 and 2023-24… Continue reading Rebate u/s 87A
An effective strategy for managing inventory and controlling your budget
Effective inventory management and budget control are crucial for businesses to optimize operations, reduce costs, and ensure profitability. Here’s a strategy that combines both aspects to help you manage inventory efficiently while staying within budget: Demand Forecasting: Start by analyzing historical sales data and market trends to forecast future demand for your products accurately. Use… Continue reading An effective strategy for managing inventory and controlling your budget