Understanding Book Debt Statements: How Banks Use Your Receivables for Loan Limits Vinu: Manu, what is this Book Debt Statement that businesses submit to banks? I came across this term in a loan document. Manu: Good question, Vinu. A Book Debt Statement is a list of amounts receivable from customers...
Cash Flow Forecasting: The Key to Business Survival – A Conversation with Manu & Vinu Vinu: Manu, I keep hearing that cash flow forecasting is crucial for business survival, but I don’t really understand why. Isn’t it just about tracking cash inflows and outflows? Manu: You’re partially right, Vinu....
ROE vs. ROA: Understanding Profitability Across Manufacturing, Services, and Hospitality Vinu: Manu, I’ve been hearing a lot about two important financial metrics—Return on Equity (ROE) and Return on Assets (ROA). Can you explain what these terms mean and why they are important? Manu: Sure, Vinu! Le...
Book Profit vs. Cash Profit: Understanding the Key Differences for Financial Stability Vinu: Manu, I often hear about “Book Profit” and “Cash Profit” in financial discussions. Are they the same, or is there a difference? Manu: Good question, Vinu! They are quite different. Book Profit is the profit ...
Depreciation, GST Allocation, and Accounting Treatment: A Practical Guide with Vinu & Manu Vinu: Manu, I bought some laptops for my office, and I am wondering what percentage of depreciation I should use. How do I determine the useful life of these laptops? Manu: Good question, Vinu! The depreciatio...