Pledging Receivables Pledging receivables means a business using its accounts receivable (money owed by customers) as collateral to secure a loan. Here, the company agrees that if they can’t repay, the lender can collect the customers’ payments. Using accounts receivable as collateral can be a smart way to improve cash flow, but it comes with […]
What Is Unapplied Cash Bill Payment Expense? Unapplied cash bill payment expense refers to the payment that hasn’t been matched as an actual expense. It happens when cash is paid, but the expense isn’t linked to a specific bill, making it unapplied. For example, if a company pays $500 to a supplier in advance but […]
Starting an E-commerce Business? You Should Know About Fractional CFO for Startups We were going through an article yesterday mentioning Micheal Dubin, founder of Dollar Shave Club, so we thought we should share it with you. Micheal saw an opportunity in the men’s grooming industry and started offering razors on a monthly subscription of $1. […]
Redacted Invoice A redacted invoice is a specific invoice that hides sensitive information. For instance, if a company shares invoices publicly, it can hide clients’ names. Redaction is the process of editing a document to remove or conceal sensitive information before it’s shared publicly or disclosed. This is a common practice in legal, government, and […]
Latent vs. Patent Defects Latent and Patent defects are real estate terms that define property damage. Latent defects illustrate the hidden damage, such as a faulty foundation in a new building. On the other hand, patent defects are visible damages like a cracked window when buying a property. To understand it better, think of these […]
How A Fractional Bookkeeper Can Unclog Your Plumbing Business? It’s possible that you clicked on the link as a plumber. So, let’s get one thing out of the way: we don’t know much about plumbing. However, we have heard about Benjamin Franklin Plumbing. They are a well-known plumbing company across the US. They are good […]
HoneyBook Vs QuickBooks. Who wins? It’s a tennis championship final at the Center Court, and two masters of the game are battling for the trophy. On one hand, we have HoneyBook and on another we have QuickBooks. It’s an intense match of features and functionalities, as both tools are super helpful for a small business. […]
Involuntary Alienation Involuntary alienation describes loss of ownership without consent. An individual can lose property through legal actions like foreclosure, unpaid taxes, or death. For instance, if someone falls behind on mortgage payments, the bank might foreclose on the house, and they can lose ownership involuntarily. It reminds us of the TV remote battle in […]
Deferred Revenue Haircut A deferred revenue haircut is an accounting adjustment in which a portion of deferred revenue (undelivered payment) is reduced (haircut) to reflect risks like refunds or cancellations. For years, businesses acquiring deferred revenue as part of a merger or acquisition faced a frustrating accounting issue—a revenue “haircut.” Under previous GAAP rules, companies […]
How a Biotech CFO Turns Research into Revenue? In 2018, Moderna made headlines by raising $600 million in an initial public offering (IPO). It was a bold move for a company that had yet to bring a product to market. The question on Wall Street was: How would they turn all this groundbreaking research and […]
