Knowledge Archive - Maddern Financial

Financial and accounting knowledge

Understand the lingo

Explore our comprehensive knowledge section to understand key financial and accounting terms. This resource is designed to clarify industry jargon and enhance your financial literacy, while helping you make informed decisions.

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Financial and accounting terms - Popular

Self-Managed Super Fund
An SMSF (Self-Managed Superannuation Fund) is a private superannuation fund managed by its members, who are also the trustees. It offers greater control over investment choices and allows members to tailor their superannuation investments to their individual preferences and retirement goals. However, it comes with strict compliance requirements, including adhering to regulatory standards set by […] more
Depreciation
Depreciation is the gradual reduction in the value of an asset over time due to wear and tear. It’s used in accounting to allocate the cost of tangible assets over their useful lives, matching the expense with the revenue generated by the asset. This systematic allocation helps businesses more accurately reflect the true cost of […] more
Cash Flow
Cash flow refers to the net amount of cash being transferred into and out of a business. Positive cash flow is crucial for meeting obligations and investing in growth, as it ensures that the company has enough liquidity to pay its bills, salaries, and other expenses on time. It also enables the business to take […] more
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time, detailing assets, liabilities, and equity. It offers insights into what the company owns and owes, as well as the amount invested by shareholders. By comparing current and previous balance sheets, stakeholders can assess […] more
Expenses
Expenses are costs incurred in the process of earning revenue, including rent, salaries, and utilities. Effective expense management is vital for profitability as it helps control costs, maximize profit margins, and ensure the efficient use of resources. By regularly monitoring and analyzing expenses, businesses can identify areas where cost savings can be achieved, eliminate wasteful […] more
Revenue
Revenue is the total income generated from normal business operations, such as sales of goods and services. It’s a primary indicator of business performance and growth, reflecting the effectiveness of the company’s core activities. High revenue levels suggest strong market demand and successful business strategies. Monitoring revenue trends helps businesses identify opportunities for expansion, areas […] more
Liability
Liabilities are financial obligations a company or individual owes to others, including loans, accounts payable, and mortgages. Managing liabilities is crucial for maintaining financial stability because it helps ensure that these obligations are met promptly, preventing default and maintaining good relationships with creditors. Proper management involves monitoring debt levels, scheduling timely payments, and negotiating favorable […] more
Equity
Equity represents the owner’s interest in the company, calculated as assets minus liabilities. It’s a key indicator of financial health and investor confidence, reflecting the net worth of the company. Equity can increase through retained earnings, which are profits reinvested in the business, or through the issuance of new shares. Higher equity generally suggests a […] more
Liability
Liabilities are financial obligations a company or individual owes to others, including loans, accounts payable, and mortgages. Managing liabilities is crucial for maintaining financial stability as it ensures that obligations are met in a timely manner, prevents the accumulation of excessive debt, and helps maintain a good credit rating. Effective liability management also allows for […] more
Asset
An asset is any resource owned by an individual or business that is expected to provide future economic benefits. Assets can take various forms, including cash, investments, real estate, equipment, and intellectual property. They are essential for the operation and growth of a business, as they enable companies to generate revenue, support operations, and create […] more

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Why Maddern Financial Advisers?

Our
Leadership Team

Maddern Financial
Money Talk Podcast

Independent
Financial Advice

Investment
Advice

Retirement
Strategies

Self Managed Super Funds (SMSF)

Insurance
Advice

Business
Advice

Tax Planning
and Advice

Loans Leasing
& Mortgage Broking

Our
Clients

Financial and accounting advice for Doctors

Self-Managed Superannuation Funds

Financial and accounting advice for Dentists

Financial and accounting advice for Pilots and Aviation

Financial Advice for Sports Professionals

Financial and accounting advice for Business Owners

Understand the lingo

Self-Managed Super Fund

Depreciation

Cash Flow

Balance Sheet

Expenses

Revenue

Liability

Equity

Liability

Asset

Why Maddern Financial Advisers?

Our Leadership Team

Maddern Financial Money Talk Podcast

Independent Financial Advice

Investment Advice

Retirement Strategies

Self Managed Super Funds (SMSF)

Insurance Advice

Business Advice

Tax Planning and Advice

Loans Leasing & Mortgage Broking

Our Clients

Financial and accounting advice for Doctors

Self-Managed Superannuation Funds

Financial and accounting advice for Dentists

Financial and accounting advice for Pilots and Aviation

Financial Advice for Sports Professionals

Financial and accounting advice for Business Owners

Understand the lingo

Self-Managed Super Fund

Depreciation

Cash Flow

Balance Sheet

Expenses

Revenue

Liability

Equity

Liability

Asset

Our
Leadership Team

Maddern Financial
Money Talk Podcast

Independent
Financial Advice

Investment
Advice

Retirement
Strategies

Insurance
Advice

Business
Advice

Tax Planning
and Advice

Loans Leasing
& Mortgage Broking

Our
Clients