New! Capital Maintenance Concepts.
Are you familiar with the term capital maintenance?
Capital maintenance is a crucial step to take if you want your business to be successful in the long run. It is an accounting concept based on the principle that income is only recognized after capital has been maintained, or in another scenario, when there is a full recovery of costs.
Capital maintenance is attained if the amount of a company's capital at the end of a period is unchanged from that at the beginning of the period. Any excess amount is thus treated as profit.
Companies with efficient budget planning have been proven to be more stable in terms of a crisis as compared to those without.
This concept will benefit you and your company because it can aid in fitting in a stipulated budget for projects. It helps to protect the issued capital of the company for the benefit of creditors. Hence you can analyze your company progress in the current moment and also have a contingency fund for the future.
In truth, this is a concept which accountants specialize at. But having the basic foundation on this issue is essential for you to better understand how your company works. In addition to that, you can discover the strategies tactics which can prevent you from being conned. You can also take credit for being able to stabilize the financial budget of your company such that you can make necessary financial decisions that can benefit your company in the long run without making losses.
Now that you have gotten a vague idea on what this term is, how are you going to implement this into your business? What is the first and most crucial step to take?
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Most people have the mistaken thought that only accountants can be good at doing this.
I have designed this product such that even young people with no experience in finance whatsoever can understand and implement. Even if you have no background in accounting, you can easily grasp the concept by following in my guidance.
And even if youve already prepared your own plan or had prior experience in learning this skill, you can pick up more tips and knowledge to enhance it for better performance!
Warning: This is not an express platform to determining the success of your company. If you are willing to put in time, energy, and effort, you will definitely see good results!
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A way to determine your profits and expenses incurred.
Case studies and templates from renowned marketers exclusively for you.
The dos and donts when preparing your budget.
Avoid from being scammed by possible fakes.
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And so much more, these are only the appetizers!
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