Category: Accounting

Startup metrics every Entrepreneur should measure

Startup metrics every Entrepreneur should measure

Startups are modern day business which allows you to take up higher risks, experiment and build disruptive businesses very quickly. Being successful requires a lot of discipline and there are certain startup metrics that every entrepreneur should track and measure.   FINANCIAL METRICS   #Revenue Revenue is recognized when the service is actually provided or ratable…

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Accounting for Entrepreneurs #2 : Calculating Asset Utilization

Accounting for Entrepreneurs #2 : Calculating Asset Utilization

What it Measures How efficiently an organisation uses its resources and in turn, the effectiveness of the organization’s managers. Why is it Important The success of any enterprise is tied to its ability to manage and leverage its assets. Hefty sales and profits can hide any number of inefficiencies. By examining several relationships between sales…

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Accounting for Entrepreneurs #1 : Calculating Asset Turnover

Accounting for Entrepreneurs #1 : Calculating Asset Turnover

What it Measures The amount of sales generated for every unit currency worth of assets over a given period. Why is it Important Asset turnover measures how well a company is leveraging its assets to produce revenue. A well-managed manufacturer, for example, will make its plant and equipment work hard for the business by minimising…

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