Corporate finance for building your business

Face what our accountant tells us about the situation of our company can be very frustrating. The financial ignorance is one of the main problems facing an entrepreneur. Ideas are, but do not have the tools necessary to put in numbers that we approach business. This is further aggravated when we are just at the stage of creation of our company. An ordeal, though.

corporate finance

We aim to simplify the financial knowledge to our business. First, to create our company, we will use the economic resources of its partners or uniquely ours, in case of a personal company. If we do not have the necessary money, resort to loans from financial institutions. However, these methods of raising capital are known as the liabilities of the company. With this capital, we will process permits, patents, we buy equipment needed for the work of the company, and perhaps see the need to buy a car or rent a property. All this is known as the asset of the company.

Not all liabilities are calculated in the same way. Our capital, for example, does not require repayment or interest payments. Therefore, this type of capital is referred to as equity. By buying debt with the bank, cash or individuals, we are in immediate obligation to repay, so that money earned is renamed as non-current liabilities. On the asset side, we found that on entering the business world, not observe immediate payment of our capital, as many of our customers take certain deadlines to give us back monetarily. To all those debts they acquire with us are called current assets.

There are two categories that make exceptional corporate work: Providers and Public Administration. When we establish relationship with our suppliers, customers had to become. As mentioned above, as customers that we make use of these service providers without having to make immediate payment for the service. In the case of Public Administration, we deduce part of the income of our employees (or ourselves) to be earmarked for different services. Both financial concepts are enshrined as the Auto Financing Company.

These are some of the most important financial concepts with which you must have when starting a business. It can be very cumbersome to start understanding these concepts, but are necessary (even essential) to put the finances in order for our organization, and so we take any counter as unwary in this matter.