23 articles
Turnover growth can hide a shrinking margin. Learn how horizontal and vertical analysis work together to reveal the real trends and structure behind your financial statements, with a worked SME example.
A rising ROE can mean genuine operational improvement or simply more borrowing. DuPont analysis splits return on equity into profitability, efficiency, and leverage so SME owners can tell which force is really driving the number before a lender or buyer asks.
Profitable on paper but perpetually short on cash? The cash conversion cycle reveals exactly how many days your money is trapped in stock, unpaid invoices and supplier terms – and shows precisely where to act. Using a worked example from a bespoke furniture maker, this guide walks through calculating DIO, DSO and DPO, and turning those figures into real, freed-up cash.
IFRS 16 now forces most leases—office space, vans, photocopiers—onto the balance sheet as a right-of-use asset and lease liability. This guide walks through why the change happened, a worked five-year office lease example with journal entries, and what it means for covenants, EBITDA and management reporting.
A finance team that reports numbers without tracking the right numbers is working hard in the wrong direction. Key performance indicators —…
You can be turning a profit every month and still find yourself unable to pay your suppliers. It sounds contradictory, but it…
If your business has ever waited on a customer to pay an invoice — or had a supplier chasing you for settlement…
If your business sells a physical product — or buys in goods to resell — then Cost of Goods Sold is one…
Ask most SME owners whether they have accounts and the answer is yes. Ask them which type, and the answer often becomes…
Before a business makes its first pound of profit, it must first earn enough to cover every cost it has already committed…
