Business 101 | Revolut

What is small business tax and who pays it?

If you’re self employed and run your own business, you need to take responsibility for managing your taxes. Being on top of the small business taxes you’ll pay helps avoid surprises

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Understanding the free cash flow formula

cash flow is the cash that a company generates after considering all the cash outflows. A cash outflow might be done to stay in business or to maintain the capital assets which the company has acquired.

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What is sales revenue?

If you’re starting a business, it’s crucial you understand sales revenue, the formula and how to use it [https://blog.revolut.com/sales-revenue-formula/]. Your sales revenue will be a critical part

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What is the sales revenue formula and how is it used?

In this article we are covering everything you need about the sales revenue formula. Its importance, use and common errors. * Why do we need to know sales revenue? * What is it used for?

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What does Cost of Sales mean and how is it calculated?

Understanding the numbers in your business is essential for all small business owners if you wish to scale a business. Most business owners understand the revenue and overheads element of a P&L

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Understanding enterprise multiple EV/EBITDA

Ashutosh Garg, Product Manager, Refrens.com EV/EBITDA is a ratio that compares a firm’s enterprise value (EV) to its earnings before interests, taxes, depreciation, and amortization [https://blog.revolut.com/what-is-the-difference-between-depreciation-and-amortization/

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What is the best accounting software for small businesses?

What is the best accounting software for small businesses? Read the list of Joe David of Nephos Accountants who makes his expert recommendations.

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What is the difference between depreciation and amortization?

Both depreciation and amortization are ways of expensing the cost of a business asset over its useful life period. When a company acquires a business asset, the complete cost of acquisition of the asset is not expensed at once, but proportionately based on the time period of their usage.

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How to work out revenue?

When you think about how to work out revenue, it helps to remember that the primary goal is merely to show the income that a business generates from its ordinary activities over a given period. That’s it.

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How to calculate cash flow with the indirect method

Liquidity is the lifeblood of a business, and so the premise of how to calculate cash flow is critical. The primary tools are the cash flow statement and the cash flow forecast. The

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What is free cash flow and why does it matter?

Free cash flow (FCF) is a metric which reveals the liquidity of a business (i.e. its access to cash) as well as its operating efficiency. In straightforward terms, free cash flow is

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What is the indirect method of preparing a cash flow statement?

When you need to prepare a cash flow statement for a business over a given period, there are two different ways to calculate the actual cash flow: indirect method and the direct method.

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What is cash flow analysis and why does it matter?

The premise of cash flow analysis is to examine how cash moves into and out of a business over a given period. At the simplest level, this horizon scanning enables the business to

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What does the EBITDA formula mean in practice?

The EBITDA formula is a profit metric that is often used to examine the financial performance of a business. This unconventional metric excludes several categories of costs that the business would otherwise deduct

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Quick tips on how to improve cash flow

The challenge of how to improve cash flow is rarely far from the thoughts of most business owners. However, this subject strikes particular fear into the heart of SMEs because they are less

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How to work out net profit

When you think about how to calculate net profit, it can feel daunting. In reality, the net profit formula is simple: it's the total revenue of a business over a given period, once

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What does net cash flow mean?

The net cash flow of a business is the aggregate effect of its cash inflows and cash outflows over a given period. If total cash receipts are greater than the amount of cash

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Financial forecasting: What are financial forecasts and why do they matter?

The financial forecast is the not-so-secret weapon that a business deploys to predict its near-future performance. In the absence of a crystal ball, the forecast is relied upon to estimate the direction of

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What is positive cash flow and why does it matter?

Positive cash flow means that the net balance of the cash flow statement of a business over a given period is greater than zero. In other words, the cumulative effect of the total

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What does operating cash flow mean?

The operating cash flow of a business is one of three main sections in its cash flow statements. The other two parts are its investing activities and financing activities. As the name implies,

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What is a cash flow forecast and how to create one?

Cash flow forecasting is a process which helps a business to predict what it expects its cash position to be in the near future. The goal is to preempt problems (i.e. running

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What is the total revenue formula?

The total revenue formula is tricky to describe as it has more moving parts than seem apparent at first glance. So, before we look at how to calculate total revenue, we need to

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What is the profit equation and how is this used?

Profit is defined as the amount by which the revenue [https://blog.revolut.com/what-is-revenue/] of a business exceeds its costs over a given period. The implication of this point is that the

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What is the operating profit formula?

The operating profit formula sometimes creates more confusion than rival profit metrics, such as net profit. This is primarily due to uncertainty over which specific cost categories to include in the operating profit

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What is the correct way to use the EBIT formula?

The EBIT is a profit metric which stands for earnings before interest and tax. As the name suggests, it reveals how much profit a business makes over a given period once it deducts