Do you receive financial reports from companies whose shares you own and cannot understand what the report says? Are you a business owner who is good at business operations but knows nothing about accounting? If yes, you need to learn to understand common financial reports. Financial reports may comprise of hundred pages but actually there are only three pillars on which accountants build a huge edifice; the balance sheet, income and expenditure account and cash flow statement. If you understand the basics of these common financial reports you have solved the puzzle. The Balance Sheet A bala...

For a layman, the question what is the present value of money would sound like something irrelevant. Ask that question to someone not conversant with the meaning of the term and you are likely to be laughed at. After all, the present value of hundred dollars today is neither more nor less than hundred dollars. However, present value of money has a different meaning in the world of finance and is among the most widely used calculations. In finance, present value of money is the present worth of a future sum or a stream of cash flows assuming a specified rate of return. It is often used to det...

It is a misnomer that professionals do not need assistance in financial planning and managing their money. Professionals are masters in their chosen field and financial management may just be Greek to some. Financial planning or shall we say, saving money, is one of the most important aspects of modern living. It is even more essential for professionals who find it hard to save money on low incomes. While financial planning requires taking hard decisions, it is in no way a suggestion that some expenses be totally cut off totally. It is about striking a balance between income and expenditure...