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The Beginner's Guide to Balance Sheets

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Whether you're doing your own accounting with accounting software , or you hired an accountant to prepare your financial statements, you've likely seen the balance sheet. It's used by business owners and investors to see what the company owns and what it owes, and its primary use is to track earnings and spending.

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Debt to Equity Ratio, Demystified

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And for investors, the debt to equity ratio is used to indicate how risky it is to invest in a company. When a business uses equity financing, it sells shares of the company to investors in return for capital. Let's say a software company is applying for funding and needs to calculate its debt to equity ratio.

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The Quick Guide to Retained Earnings

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Once your business begins to earn a profit, you'll need to reinvest some of those earnings. This will help your business grow and gain more profit. Any additional funds that aren't distributed to shareholders and investors are referred to as retained earnings. Check out the best free and paid accounting software options next.

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Accounting 101: The Ultimate Guide to Accounting Basics

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COGS or COS is the first expense you’ll see on your profit and loss (P&L) statement and is a critical component when calculating your business’s gross margin. Reducing your COGS can help you increase profit without increasing sales. Financial statements from your bookkeeper or bookkeeping software. Depreciation. Liabilities.

Banking 141
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Traits of Startup Unicorns in 2024 [Data + Expert Insights]

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Your favorite graphic design software or AI tool may just be a unicorn startup dazzling in plain sight. A unicorn company isn't necessarily profitable. This backbone isn't surprising given that 3 of the top 10 unicorn categories are software (#1), pharmaceuticals and biotechnology (#7), and healthcare technology systems (#8).

Investors 104
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Entrepreneurship vs. Employment — the Complete List of Pros and Cons

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Your earnings will be the business’s profits. Pro: Managing Your Company’s Profit. If you run a business, you’ll receive the profits first. Profits can increase even if you spend more money to grow your business. Other entrepreneurs take out loans to cover startup costs or work with venture capital investors.

Insurance 133
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Startup Financing: How It Works & How to Get It

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Some have long repayment terms and others require you to give partial ownership to investors. For instance, an investor who gives money to a startup and gets shares in that company is considered dilutive financing. Business owners can use this equity for financing by selling shares to outside investors in exchange for capital.

Finance 21