Definition: Working capital refers to the difference between a company’s current assets and current liabilities. In lay man terms… It is a measure of a company’s short-term financial health and operational efficiency. Working Capital = Current Assets − Current Liabilities Where: Current Assets include cash, accounts receivable, inventory, and other assets expected to be converted into cash within one year. Current Liabilities include accounts payable, short-term debt, and other obligations due within a… Read More
Business Tips
The Dreaded CRA Audit & The 3 Golden Rules
I made a YouTube video on this very topic, and I highly recommend you watch the video. Before we begin, I have a confession to make. It was my second video, I was still learning, the graphics and effects are horrendous. Looking back, it’s quite embarrassing. On the flip side I am super happy to say the content itself is top shelf. Save yourself the eye strain and listen to… Read More
Companies need a budget, and they need it now!
Starting a company is fun, exciting, and scary at the same time. It’s natural to make mistakes as you go along your journey, it’s all part of the learning process. Pretending as if something doesn’t exist is not natural. Let me explain… Managing and monitoring cashflow, monthly financials, taxes filings, and preparing budgets and forecasts are part of your fiduciary duty as an officer of the company. In too many… Read More