Deliberate earnings may have a variety of impacts on the shareholders. When wisely reinvested, they might result in enhanced income and later improvement in share values. In other cases where the earning is not sufficient to give good returns and dividends, the shareholders might doubt the management strategy. Retained earnings are also used on the balance sheet to assist in determining the book value of the company; retained earnings have the potential of affecting valuation measurements. The broad trends in retained earnings are often used by investors to compare the effective use of profits by a company in attempting to grow or just cash-hoarding.
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bookkeeping for startups is a process of managing daily financial records such as revenue, bills, salaries, and invoices. Proper bookkeeping also assists startups in tracking cash flow, tax filing preparation and budgeting. It usually involves the usage of software applications such as QuickBooks or Xero, balancing of the bank statements, and the sorting of receipts. As a startup in its initial phase, bookkeeping helps in keeping the finances clean and attractive to the investors. This is the most likely to be outsourced or shared with a part-time book keeper, particularly where the founders are more concerned with product development and customer acquisition.
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