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How to Keep Inflation From Derailing Your Budget

Zenefits

With the rising inflation rate breaking all records, rising interest rates, supply chain disruption, the ongoing pandemic, and armed conflict in Europe, small businesses are caught between a rock and a hard place. it’s critical to take a solid and truthful inventory of your current accounting process and operations.

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A Refresher on Current Ratio

Harvard Business Review

One of the biggest fears of a small business owner is running out of cash. But large businesses in financial trouble face the same risk. To know whether a company is truly on the cusp of hitting a $0 balance in their accounts, you can’t simply look at the income statement.

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A Refresher on Debt-to-Equity Ratio

Harvard Business Review

If your small business owes $2,736 to debtors and has $2,457 in shareholder equity, the debt-to-equity ratio is: (Note that the ratio isn’t usually expressed as a percentage.). It helps them understand how you’re paying for your business. Both of these numbers come from your company’s balance sheet.

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The Best Accounting Platforms for a Growing Business

Zenefits

As your small business continues to scale, cash flow transparency and accounting efficiency become harder to maintain. That low-cost or free accounting software you started with 2 or 3 years ago might now be causing bottlenecks. Long accounts receivable, or payment, wait times. Poor cash flow visibility.