Figyan

A resource site for beginners with easy to understand income tax, gst, and finance tutorials for mastering the basics and beyond.

Finance

How to write an effective business plan for investors or bankers

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Business plan is a written document or road map which describe what your business is, what you plan to do by outlining your goals, industry, business structure, product or services and how you plan to make the business a success.It analyze the business prospects and gives a detail projection about its future in comparison to present situation.Before getting into how to … [Read more...] about How to write an effective business plan for investors or bankers

What is depreciation and How its calculated

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One of the basic principles of an accrued accounting system is matching revenue with expenses. When a company buys assets such as building, plant and machinery, the cost is capitalized in an account. These assets are used over their useful life in the production of revenue. To match revenue with expenses for a period, management spread the cost of the assets over its useful … [Read more...] about What is depreciation and How its calculated

How to calculate return on capital employed – ROCE

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To monitor business performance, investors measure the amount of profit a company has earned as a percentage to the total capital employed. This financial ratio is known as return on capital employed or ROCE.Return on Capital Employed (ROCE) of a company tells you whether the profit is sufficient considering the amount of equity and long-term debt invested to earn … [Read more...] about How to calculate return on capital employed – ROCE

Capital expenditure Vs. revenue expenditure – What is the difference

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When a business makes a purchase, depending on certain factors, it's either considered as capital expenditure or revenue expenditure. To understand the concept, there are basically two areas where money is spent in an organization;In this article, we will explain how expenditures are considered as capital expenditure or revenue expenditure and what is the difference … [Read more...] about Capital expenditure Vs. revenue expenditure – What is the difference

What is company’s capital structure and why it matters

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A business can grow by investing in new plants and equipment for expansion or to enhance its capacity. To fund its expansion, the company has two choices; borrow additional funds from banks or financial institutions or to raise capital by selling additional ownership interests. Both methods have advantages and disadvantages. Management should combine both type of financing to … [Read more...] about What is company’s capital structure and why it matters