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The budget is the amount of money spent in a certain period to implement a program. There is no single company that has an unlimited budget, so the budget preparation process is important in a planning process.
As a business person or professional, you need to understand basic knowledge related to financial management, including how cash works more comprehensively.
The income statement is a report to measure the success of a company's operations over a certain period of time. Usually investors use the income statement to determine the profitability and value of the investment. The income statement provides information to help investors and creditors predict future cash flows's.
The balance sheet is a mandatory report made by a company to describe its financial condition. In general, it consists of three main components, namely liabilities, capital, and company assets. The failure of a business in preparing a balance sheet will have an impact on every managerial layer, because it contains important information for many parties.
Break-even analysis is a small-business accounting process for determining at what point a company, or a new product or service, will be profitable. It's a financial calculation used to determine the number of products or services you must sell to at least cover your production costs.
Financial ratios or financial ratios are a company financial analysis tool to assess a company's performance based on a comparison of financial data contained in financial statement items. The ratio describes a relationship or balance between a certain amount with another amount.
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