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Archive for the ‘Accounting’ Category

The Balance Sheet

Posted by Seth Elliott On October - 7 - 2010

The balance sheet is a snapshot of the financial condition of a company. Essentially, it reveals – at a set moment in time – what the company owns or possesses (assets), what the company owes (liabilities) and what the company is worth “on paper” (equity). Balance sheet items can be evaluated in various ways, but […]

My EBITDA is Bigger Than Yours . . .

Posted by Seth Elliott On September - 21 - 2010

Venture Capitalists, Investment Bankers and related professionals love to sprinkle their conversation with esoteric terms – most notably the fabled EBITDA and EBIT. Let’s examine the calculation of these items and, more importantly, why they are used. EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization. Although this can be calculated from the Net […]

The Income Statement

Posted by Seth Elliott On September - 14 - 2010

Continuing our discussion of key accounting and finance elements for entrepreneurs, let’s take a look at the components of a financial statement. It’s easiest to begin by examining the Income Statement. The Income Statement is what many people imagine when thinking of financial statements. Essentially, the Income Statement is the Profit and Loss statement (P&L) […]

Leaping the GAAP

Posted by Seth Elliott On September - 7 - 2010

One of my clients once said to me “When I first had to deal with accounting and financial statements, it made me want to cower in fear.” While that may not be the typical entrepreneur’s experience, it can sometimes feel like accounting processes were designed to be overly complicated and confusing. Today, we’ll examine GAAP […]

Corporate Finance and the Entrepreneur

Posted by Seth Elliott On August - 10 - 2010

I have received a number of questions from entrepreneurs (and would-be entrepreneurs) lately that are related primarily “corporate finance.” For those unfamiliar with the term, it broadly addresses the area of finance that deals with the financial decisions made by business enterprises, including tools and analyses, in order to maximize value. A related component references […]