Accounting Software Use: Express Business Evaluation - Essay Example

The paper "Accounting Software Use: Express Business Evaluation" is a good example of an essay on finance and accounting. In this digitalized era, technology has influenced every aspect of society including business organizations. The complex global economy has persuaded business organizations to acquire competent software to integrate its operating segments for effective and efficient functioning. Decision-making is one of the most crucial elements for the business organization that shall be adequately addressed by emphasizes economic research (R.R Bowker Company). For the purpose financial analysis is conducted to determine risks, performance and financial modeling of the organization. There are several financial analysis software that provides simplified business valuation, such as Staff File, Bizmanualz, Moody’s Analytics, etc. This paper provides detailed information about Express Business Valuation software (a financial analysis software).

Express Business Valuation Version 2.0 is accounting software that allows calculating and evaluating risk, performance and financial modeling of an organization through the calculations of financial indicators (i.e. financial ratios). It offers its users with a variety of business valuation methods to ensure accurate and valid results. The software is used by several business organizations to evaluate their financial performance; it also allows users to determine future prospects through determining its historical financial records (R.R Bowker Company). The software has a straightforward interface for the entry of financial data. It is simple to use, the users that are aware of the Microsoft excel grid-style interface make it easy. It provides about 19 business valuation methods to the users that are relevant for the business. The prominent features of the software include the following.

• Financial Statement and Adjustment

It allows users to annualize and adjust historical input for six months with twelve months percentages

• Over 100 Schedules and analyses

The data is imported through industry data through IRS Corporate Ratios, the calculation for the value of the assets including excessive and non-operating assets of the firm.

• Income Valuation Methods

The software capitalizes earning, excessive earning, working capital, capital expenditures, expanded multi-year ratio analysis with the comparison of the industry ratio to provide an overview of the performance of the organization in the industry. It also provides post-sale cash flow, payback period, IRR, the hypothetical term of sales, buyer and sellers settlement, etc.

• Market Data and industry Composition Valuation Methods

It allows industry valuation that is assessed through Price to Earnings, Price to Book Value, Price to Revenue and Price to Cash Flow. It also uses market approaches to make marketing data more accurate with the different mid-market comps.

• Subject Company Transaction

The valuation of the firm is done through its past transaction and business stock.

• Asset-Based Valuation Methods

The software uses Asset-Based Valuation Methods to determine liquidation values such as going concerns of the firm to determine its solvency.

 Valuation Conclusion and Sanity Checks

The software has the valuation methods ensuring business sense in its calculation in order to provide a realist analysis of the firm. Weightage is assigned to various appraisal methods.

The software generates valuation within 60 seconds through the 25+ pages valuation report of that covers assumptions and limitations, financial valuation methodology, hypothetical deal scenario, cash flow and analysis schedules with the different charts and tables to make the report analytical with the detailed information of the firm's performance, risks, and forecasts.