Goodwill Definition And Accounting For Goodwill

Goodwill in business is the intangible value exceeding a company’s tangible assets and liabilities, reflecting brand reputation, customer loyalty, and employee expertise. It arises during business acquisitions when the purchase price surpasses the fair value of identifiable net assets. This requires careful allocation and regular impairment testing to guarantee financial statements accurately reflect potential future benefits. Discover how goodwill impacts […]

Cashflow Management Tips For Small Business

To manage cash flow effectively in your small business, regularly review your cash flow statement and establish a cash reserve strategy. Monitor expenses closely to eliminate unnecessary costs and enhance your accounts receivable process by setting clear payment terms and following up promptly. Leverage technology like cloud-based accounting software and mobile banking apps for real-time efficiency. Explore these strategies to […]

Financial Accounting: Introduction To Small Business Accounting Terminologies

Understanding small business accounting vocabulary is an important first step in learning how accounting really works. So let’s look at some key terms in financial accounting and their meanings. The Journal, sometimes call the Book of Original Entry or more commonly the General Journal, is how transactions are entered into accounting records. It is a […]

The Essential Elements Of VAT Invoices

If you happen to manage a small business for which you are registered for Value added tax, then its important that whenever you supply goods or services to anyone else you must issue him or her a VAT invoice. Being a registered business enterprise, you’ll be able to reclaim Value added tax on purchases made […]

6 Reasons A Start Up Business Needs An Accountant

Errors in your accounting or neglecting to comply with statutory requirements can have significant consequences for a start up business and most small business. For example not knowing when to register for VAT or PAYE can result in serious penalties for suspected income tax and VAT avoidance. For a sizeable corporation, this can hurt both […]