The Importance of Financial Forecasting in Business Planning Financial forecasting is a fundamental pillar of business success. Organizations that plan with accurate forecasts can navigate uncertainties, optimize resource allocation, and make strategic decisions with confidence. Financial forecasting is the estimation of future financial outcomes based on past and current market trends and data along with various… Continue reading The Importance of Financial Forecasting in Business Planning
Category: Finance
Deferred Taxes – Importance
Deferred taxes are an essential aspect of financial accounting for several reasons: Understanding Future Tax Obligations: Deferred taxes help businesses and investors understand future tax liabilities or assets, which can significantly impact cash flow and financial planning. Accurate Financial Reporting: They ensure that a company’s financial statements accurately reflect its future tax obligations. Without accounting… Continue reading Deferred Taxes – Importance
Vendor Exemption (India Localization SuiteTax Engine SuiteApp 2025.2)
Vendor exemption is a key configuration in NetSuite that allows businesses to define conditions under which a vendor is excluded from certain financial or compliance processes, most commonly tax withholding. This functionality is particularly useful for organizations managing large vendor networks, enabling them to streamline operations while maintaining regulatory compliance. Historically, NetSuite offered two distinct… Continue reading Vendor Exemption (India Localization SuiteTax Engine SuiteApp 2025.2)
Lower Tax Deduction Certificate
What is a Lower Tax Deduction Certificate (LTDC)? In India, whenever you pay certain types of vendors (professionals, contractors, etc.), you’re required to deduct TDS (Tax Deducted at Source) at a fixed rate prescribed under the Income Tax Act (e.g., 10% under Section 194J for professional services). Sometimes, the vendor’s income level, exemptions, or business… Continue reading Lower Tax Deduction Certificate
Accounting Preference: Void Transactions Using Reversing
In NetSuite, the Accounting Preference “Void Transactions Using Reversing” allows the Void button to reverse journal entries in the following records: Check Bill Payment Payroll Liability Payment Customer Refund Tax Payment Tax Liability Check When this feature is enabled, the Void button will be removed from these records: Sales Order Estimate Cash Sale Invoice Return… Continue reading Accounting Preference: Void Transactions Using Reversing
Deferred revenue
When businesses receive advance payments, they don’t immediately record this money as revenue—instead, they treat it as a liability until they deliver the promised goods or services. Called deferred revenue, this approach ensures financial statements accurately reflect what the company owes and what it has genuinely earned. In subscription-based industries with software services, prepaid service… Continue reading Deferred revenue
Hedging
Hedging is a risk management strategy used by businesses and investors to protect themselves from potential losses caused by fluctuations in markets such as currency, commodities, interest rates, or stocks. Instead of aiming for higher profits, hedging focuses on minimizing uncertainty and safeguarding existing positions. For example, an Indian exporter who earns in U.S. dollars… Continue reading Hedging
Next Gen GST Reform
GST Reform The complicated GST slabs that gave headaches to small traders after the flagship tax overhaul came into effect, was cleaned up by the government today, leaving only two slabs — 5 and 18 per cent. The new structure will be implemented from September 22. For the common man, it means more money in… Continue reading Next Gen GST Reform
Cash Flow Statement
A cash flow statement is a financial statement that presents total data. Including cash inflows, a business gains from its continuing progress and external financing sources, as well as all cash outflows that pay for trading activities and finances during a delivered time. In other words, a cash flow statement is a financial statement that… Continue reading Cash Flow Statement
Cloud Economics
Cloud Economics Cloud economics refers to the principles and practices that govern the benefits, costs, risks, and returns associated with cloud adoption in enterprises. As digitization accelerates across industries, cloud adoption has shifted from being a forward-thinking technological choice to a critical necessity for survival, innovation, and growth. Enterprises are increasingly focusing on applying cloud… Continue reading Cloud Economics