Startup Financial Projections: How to + Free Templates
This formula requires estimates for both the average price per unit and the number of units to be sold. The accuracy of the forecast depends on the reliability of these estimates, which can be derived from historical data, market research, and expert judgment. It’s the system for calculating and distributing compensation to your team – […]
Retained earnings: understanding and accounting for them
When a company loses money or pays dividends, it also loses its retained earnings. This is the company’s reserve money that management can reinvest into the business. Retained earnings refer to a company’s net profit after negative retained earnings paying out dividends to shareholders. This reduction happens because dividends are considered a distribution of profits […]