Companies need a base to operate in the business environment. While many companies have adopted a model to promote remote work, one element has remained the same. Despite the changes in modern business frameworks, companies still need electricity, water, and other utilities to operate. These items fall under the utility …

The workforce is essential in many industries. Whether service- or product-based, businesses need employees in many areas. In manufacturing companies, these employees also help contribute during the production cycle. The work done by them falls under the definition of labor. It includes any effort, skill, and time employees put toward …

Structured finance is a type of financial engineering that involves the use of complex financial instruments to structure sophisticated transactions. It is used to manage risk, raise capital and facilitate asset transfers. Structured finance can involve the securitization of assets or other forms of debt financing. These structures are designed …

The matching concept in accounting requires companies to match expenses to the revenues to which they relate. Therefore, companies may spread costs over several years to ensure that. A typical example of the matching principle affecting accounting is depreciation. Companies spread the cost of their assets over several years to …

Pricing can be a major factor in the success of a business, and price discrimination is one strategy that many companies use to maximize their profits. Price discrimination involves charging different prices for the same product or service based on consumer demand, perceived value, or any other factor, rather than …

Companies and individuals use bank accounts to facilitate their transactions. These accounts also come with the safety of their money and other benefits. However, these parties must also pay the bank for their services. The payments constitute an expense for the account holder while being an income for the bank. …

A lease is a contractual agreement between two parties. The lessor is the party that grants the use of an asset or property to another party, also known as the lessee. Usually, the lease agreement also includes other terms, for example, the duration, payment schedule, ownership, etc. In accounting, leases …

When it comes to payments, it is important to stay on top of any arrears. This means knowing if the payments are late or missed and being proactive in dealing with them. Late payments can cause a financial strain and can negatively affect credit ratings. It is important to keep …

Companies incur expenses that are a part of daily operations. These expenses are crucial in running the business and ensuring the generation of revenues over time. In some industries, companies may also incur pass-through expenses. These expenses are not the same as the ones that occur through the usual course …

Companies sell products or services that help generated revenues. For the former category, some companies purchase items to sell them after adding a margin. Some others also manufacture those products. Either way, these companies hold products that they can sell later. These products are known as inventory for the company …