Category Archives: Definitions

Meaning of Depreciation Table Part IV

Examples for freelancers and self-employed If you work as a freelancer or self-employed, there are some things that you will definitely need, because these are industry-independent. You may have offices or halls, you may need rental tables, furniture, a kitchen, software, a PC or laptop and other hardware. You can find your halls and buildings… Read More »

Meaning of Depreciation Table Part III

Imputed depreciation The imputed depreciation among the imputed costs , which, independent of commercial law and tax optimization efforts reflect the actual depreciation in the company. The imputed costs play a role especially in internal accounting and are often used as the basis for the price calculation or the determination of the imputed profit, which… Read More »

Meaning of Depreciation Table Part II

Where can you find the depreciation table? The current version of the official depreciation tables is published on the website of the Federal Ministry of Finance . According to healthknowing, the basis is the depreciation table for generally usable assets ( depreciation table AV ), in which the normal useful lives according to Section 7… Read More »

Meaning of Depreciation Table Part I

As an entrepreneur, you will be confronted with many things – especially tax-related – that you as a private person have certainly not paid enough attention to. Your purchases are very important for the company. They have a tax-reducing effect and you can write them off at the end of the year. In order to… Read More »

Meaning of Participation of Women in the Labor Market

Although the labor market has changed over time, some issues, such as gender inequality , still persist. The insertion of women in the labor market occurred late and, despite their increasing presence, women still face many challenges. In this article, the participation of women in the labor market will be discussed, how this insertion took… Read More »

Meaning of Sales Tax

You are liable for sales tax as soon as you run a business. This means that you have to levy sales tax on your sales, which you then pay to the tax office. Conversely, you can get a refund of the sales tax on products or services that you buy from the tax office. What… Read More »

Meaning of Collective Invoice

In a collective invoice, several customer orders are settled in a single invoice. A collective invoice should be used if you receive orders from a single customer on a permanent basis and then want to invoice them together at regular intervals. Why should a collective invoice be created? Instead of sending several individual invoices to… Read More »

Meaning of Monetary Benefits

Goods that a company makes available to its employees are referred to as monetary benefit. All goods that have a monetary value and are made available to the employee free of charge or at a reduced price represent pecuniary benefits. It is important that the benefit is based on the employment relationship. Benefits of a monetary value… Read More »

Meaning of Dunning Procedure

What is a dunning procedure? When can I issue reminders? If a customer does not pay an invoice within the specified period, a creditor has the right to issue a reminder. The reminder does not have to be in writing, but the written form makes sense. So you always have a receipt if the customer… Read More »

Meaning of Trade License

The trade license is the trade registration certificate. This is the official confirmation of receipt that entitles you to operate a business. The trade license has to be issued as this is provided for by the freedom of trade in Germany. However, a trade license must be applied for by a person who wants to… Read More »

Meaning of Commercial Code

The Commercial Code, or HGB for short, forms the basis or the basis of the accounting rules in Germany. The HGB contains a large part of the German laws on annual financial statements and reports as well as special regulations for insurance companies, banks and cooperatives. The Commercial Code applies to merchants and for this… Read More »

Meaning of Description of Services

Description of services – what is it? According to besteducationschools, a service description is a written, clear and consistent description of products or services that must / should be provided by project management within the framework of a project. The service description is therefore the basis for the agreement between the client and the contractor… Read More »

Meaning of Geography

We can conceptualize Geography as the science that studies the existing relationships between human beings and space, in the actions of transformation and preservation. When we reflect on how society transforms nature in space or how nature conditions, limits or drives the human population installed in a place, we are dealing with geographic studies. Such… Read More »

Meaning of Debtor

A debtor is a person who is subject to an obligation to perform as a result of an obligation. This obligation to perform is usually a monetary debt. The person who enters into an obligation to provide a service, such as the payment of a sum of money, is referred to as the debtor. In… Read More »

Meaning of Entrepreneurship

The start of self-employment is also possible with the legal form of an entrepreneurial company (UG). The entrepreneurial company is a variant of the conventional GmbH and is colloquially also called mini-GmbH , since liability does not generally run over the private assets of the shareholders. Liability is therefore normally limited to the UG business… Read More »

Meaning of Startup Coaching

In order to be successful with their future company, start-ups need the right advice. Start-up coaching is essential for many start-ups; start-ups can obtain advice on the success of their business idea, the alignment of their company with the target groups and important criteria in the start-up phase. Definition of start-up coaching According to usvsukenglish,… Read More »

Meaning of Liquidity Forecast

Can the current bills be paid in the next three to six months for insurance, taxes, rent, telephone etc? A liquidity forecast always gives a precise overview, because all planned and expected monthly income and expenses are recorded in it. The difference between the expected income and expenditure then results in the monthly surplus –… Read More »

Meaning of Innovation Management

Innovation management: the key to lucrative market opportunities Innovation is important for every company – regardless of whether it is small, medium or large. The prerequisite for new ideas to find their way is well thought-out innovation management. Renewal as a corporate goal “Innovation” is derived from the Latin word “innovare”, which stands for renew.… Read More »

Meaning of Variable Costs

So-called variable costs are part of business cost accounting. This is part of the total cost. It is the part that changes when the reference variable under consideration changes. Variable costs are also referred to as quantity-dependent, movable and variable costs. The counterpart to the variable costs are the fixed costs. These are called fixed… Read More »

Meaning of Proper Accounting

The principles of proper bookkeeping (GoB) define generally applicable rules as to how the bookkeeping should look in a company. Because every businessman and every commercial operation that uses double-entry bookkeeping must be able to prove that the bookkeeping is correct. The principles consist partly of codified guidelines, but partly also of non-codified regulations that… Read More »

Meaning of Due Diligence

This term comes from American stock corporation law and can best be translated with “reasonable care”. The background to this is the liability of an auditor in connection with the valuation of a company or property in connection with the IPO or sale. The auditor subjects the company or property to a conscientious examination of… Read More »

Meaning of Bankruptcy

Businesses can go bankrupt for a variety of reasons, a common reason being that customers fail to pay their bills. If a company gets into financial difficulties, it threatens bankruptcy. Insolvency cannot always be averted, in which case insolvency proceedings must be initiated. Statutory regulations apply to insolvency. Even individuals who are insolvent can be… Read More »

Meaning of Dividend

Defined on digopaul, the dividend is the profit distribution of a stock corporation. In Section 174, Paragraph 2, Number 2, the Stock Corporation Act explicitly speaks of an amount to be distributed. Shareholders have no legal right to receive a dividend. The amount is set anew each year depending on the profit of the stock… Read More »

Meaning of Diversification

Diversification is an important measure when it comes to reducing risk. This applies in many areas of life – but especially when it comes to investing. If you have a well diversified portfolio, you can reduce the risk of loss and still take advantage of potential returns. When it comes to diversification, there are several… Read More »

Meaning of Foreign Exchange Market

The foreign exchange market, also known as FEM by abbreviationfinder, is part of the financial market and, with an estimated daily turnover of 5 trillion US dollars, the largest market in the world. The foreign exchange market trades in book money, i.e. in the form of cashless payment instruments that are bought, sold or exchanged… Read More »

Meaning of Foreign Exchange

The term foreign exchange is quite broad, but differentiates depending on the application. Foreign currencies initially refer to all currencies that are used outside of one’s own currency area. However, a distinction must be made between foreign exchange, the accounting size, and types, the specific presence of a currency in coins and bills. If there… Read More »

Meaning of Derivatives

The financial industry calls derivative financial instruments or derivatives trading constructs to which an underlying asset is based. Securities, commodities, indices or interest rates can be used as underlyings. The value of the derivatives depends on these underlyings. According to digopaul, the derivatives mainly include options, certificates, futures, forex trading and CFDs. Most investors trade… Read More »

Meaning of DAX

According to abbreviationfinder, the name DAX stands for “Deutscher Aktien Index”. As the name suggests, the DAX is the most important share index in Germany. It reflects the development of the 30 largest companies with the highest turnover that are listed on the Frankfurt Stock Exchange. The DAX thus also allows conclusions to be drawn… Read More »

Meaning of Fund of Funds

Fund of funds, also known as umbrella funds, spread investor money even further than a classic fund by investing customer money in the funds of other companies. They are often used in fund-based asset management and are available in a wide variety of forms. Fund of funds also enable asset management for small investors, as… Read More »

Meaning of Crowdfunding

The term “crowdfunding” is made up of the two English words “crowd” (meaning: mass, horde) and “funding” (meaning: financing, support). “Crowdfunding” is often translated as “crowd funding”. Crowdfunding refers to project or company financing from a large number of different donors. The crowd is usually involved via a crowdfunding platform on the Internet. With traditional… Read More »