A fractional CFO clarifies complicated financial data and constructs different types of financial projections based on the data. Next Round CFO are our local neighbors in Austin, TX, offering tech-forward, white glove service to Seed and Series A Software-as-a Service (SaaS) companies to help optimize cash flow and accelerate growth. Punch Financial offers “The Modern...Read More

Expenses are recorded in the books on the basis of the accounting system chosen by the business, either through an accrual basis or a cash basis. Under the accrual method, the expense for the good or service is recorded when the legal obligation is complete; that is when the goods have been received or the...Read More

We would use this number, in addition to our historical data, to find our standard deviation. Warehouses and distribution centers focused on growth, efficiency, and scalability use warehouse management systems (WMS) and inventory management systems instead of Excel spreadsheets. These systems automate manual processes that are prone to human error or oversight. Ordering inventory is...Read More

The licensor’s share of the income is usually set by the “25% rule of thumb”, which is said to be even used by tax authorities in the US and Europe for arms-length transactions. Even where such division is held contentious, the rule can still be the starting point of negotiations. The actual discount factor used...Read More

Apple’s balance sheet aggregates all property, plant, and equipment into a single line. However, more information on property, plant, and equipment is often required to be reported within the notes to the financial statements. In this case, this supplementary information explains that Apple has gross PPE of $109 billion, with almost $79 billion made up...Read More

Common stock has much more volatility in share price than preferred stock. Volatility comes from daily price swings resulting from market forces at play. Similar to warrants, subscription rights to new issues are often sold to existing shareholders. These rights, known as options, are usually exercisable at a price below current market value of the...Read More

Radiation that travels between a sample and an instrument will contain the spectral information, so the measurement can be made remotely. For example, measurements can be made in toxic or hazardous environments without placing an operator or instrument at risk. Also, sample material does not have to be brought into contact with the instrument—preventing possible...Read More

Unlike operating costs, capital costs are one-time expenses but payment may be spread out over many years in financial reports and tax returns. Capital costs are fixed and are therefore independent of the level of output. On top of that, the people who make the most use of this metric are investors and debt holders....Read More