Generally, the technique helps in understanding the performance of a business to be able to make informed decisions. Income statements and balance sheets are the primary financial statements that are necessary for horizontal analysis. The income statement summarises a company’s revenues, expenses, and net profit or loss over a specified period, typically one year. Horizontal […]

An analyst will often start with forecasting revenues and expenses from the income statement, but will then turn to the statement of cash flows to determine the actual cash flow from operations. While the income statement accounts for revenues and expenses on accrual basis, the statement of cash flows provides clarity over the actual cash

Bookkeeping is the foundation of any business’s financial management, and it’s essential to understand its role. Bookkeeping involves recording and maintaining a company’s financial transactions, such as income and expenses, in a systematic and organized manner. Whether you’re managing your own small business or working for a large corporation, strong financial record-keeping is essential. Both