FeatureImage

Understanding a Financial Report

Openly traded companies companies produce three generally used financial reports:

1. Balance Sheet

2. Earnings Statement

3. Statement of money Flow

Generally the 3 are members of the quarterly and annual financial statements. Let us discuss the total amount Sheet.

Image

The Total Amount Sheet contains what’s owned (assets), what’s owed (liabilities), and just what, it anything remains (equity). Remember, the total amount sheet only shows exactly what the company’s financial position reaches one given moment.

Assets are products which have a maturity of a maximum of 12 months. Your bank account is a good example of assets. You will find typically 5 groups of current assets:

1. Cash and funds equivalents

2. Temporary investments

3. A / r

4. Inventories

5. Other current assets (i.e. operate in progress)

Lengthy term assets include fixed assets i.e. real estate, intangibles, assets (i.e. a patent) some investments (i.e. a partnership). They’re products that should last at least a year.

Current Liabilities are financial obligations payable within 12 months, for example electric power bills, or sales taxes. We are able to group current liabilities into 5 groups, also:

1. Accounts payable (regular bills, invoices, etc.)

2. Temporary borrowings (for example to satisfy payroll)

3. Earnings taxes payable

4. Deferred earnings taxes (a cpa procedure)

5. Other current liabilities

Lengthy term liabilities are financial obligations due in over 1 years time for example loans from banks

Equities. Simply put Equity may be the total assets without the total liabilities. It’s the a part of the organization the shareholders own. You will find 3 parts to equity:

1. Common stock – a small share value

2. Compensated-in capital – a cpa share value

3. Retained earnings- the equity through the years by means of profits or losses.

Analyzing financial statements isn’t an easy chore. Entire careers are constructed with doing this. It’s a process to look for the soundness and stability of the company. Every part from the statement are essential and all sorts of parts have to be studied to create a seem financial commitment.

Maintaining the financial reports of a company would be a challenge if you are sole proprietor. Hence do follow certain rules for using company money and help experts to make accurate reports for wellbeing of the company.

FeatureImage

How to invest in a startup and become a partner

Raising financing is one of the critical phases in the development of all entrepreneurship. Without money there is no project and to achieve this, entrepreneurs have to show a solid and professional idea to gain the trust of investment funds.

Image

But the new technologies also open up more possibilities to finance your startup, not only depend on the decision of investment funds and also going to the collective with equity crowdfunding, a way in which the reward is not in the products, but that the company offers shares to those who bet on their project. Equity crowdfunding is a way to democratize investments, making anyone from their computer able to invest in companies at an early stage. But how to start all? You may need to join with www.bloomio.com, an equity crowdfunding platform as a bridge between early-stage startups with individual investors.

How do you get the financing?

The operation, is quite simple. On the one hand, the companies that want to fund themselves in crowdfunder must pass a series of filters to guarantee that they are “well-armed and reliable” projects for investors.

Which sectors?

To begin with, here is a guide to investing in startups where you will find information about when to invest in the company, what to take into account before investing, what are the tax benefits of investing in startups, etc.

Which sectors look better? Which are the most scalable? Which ones will work better in the near future? If you raise those doubts, calm, we have proposed to help you. There goes a list of three hottest sectors in which you can invest your money:

Collaborative economy

With this sector there is some controversy, since it seems to be the new entrepreneurial bubble and it is often difficult to know what collaborative economy really is-beyond the pure label-and what does not. In any case, the collaborative economy is about a business segment that has more and more momentum.

Daily deliveries

Animated by initiatives such as Google Shopping Express or Amazon Fresh, several companies have emerged in recent years that specialize in the distribution of all types of products on the same day or, in some cases, in just a few hours.

Internet related things

If the Internet is already part of our life, why is not it going to be present in our own home? Refrigerators, radiators, clocks, water taps … practically everything can be connected to the internet if this means we can produce some kind of advance or make a much more efficient management of resources. You may be able to set out to discover the technologies that are being developed in this field, you will see that there is everything: devices that measure heart rate, apps for diabetics, doctors 24h on the mobile, apps for allergies, strips that measure body temperature, monitoring of patients at home, toilets that analyze your urine to improve your diet … The range is endless and, as it seems, the best is yet to come.

Hopefully this article can open your horizons about how you can try your luck on the startup path.