Liabilities & What It Means for a Business

Ronald St Facile graduated from North Eastern University with a bachelor of science in accounting and finance. A senior accountant at Infinitte, LLC, Ronald St Facile specializes in cash flow analysis and account reconciliation. His responsibilities also include calculating liabilities.

Total liabilities are a company’s debt and its financial obligations. Liabilities reveal whether the business is making a profit or registering a loss. Liabilities include short-term or long-term. Short-term liabilities are wages, salaries, and all types of taxes, while long-term liabilities include credit lines and long-term notes payable.

Total liabilities is also the difference between shareholder equity and total assets. If the total liabilities exceed the value of the firm's assets, it indicates that the business registers loss and leads to asset deficiency. This is a sign that could predict bankruptcy if things don’t change. Asset deficiency implies that assets are not used properly and show a decline in sales as they fail to generate profits and revenues. This can lead to the end of the business if it is not handled correctly. A restructure could help a business in decline as opposed to liquidation to pay the debts.

Overview of Cash Flow Analysis

Ronald St Facile is an experienced accountant who graduated from North Eastern University. A senior accountant at Infinitte, LLC, Ronald St Facile performs cash flow analysis.

Cash flow is made up of cash and equivalents that a business spends or generates over a period of time. There are three types: cash flow from operating, investing, and financing activities.

Cash flow from operating activities is generated from customers minus what is spent on expenses such as salaries, utilities, or rent. Investing activities cash flow measures money spent on long-term financial instruments and fixed assets. In finance activities, funds are received from owners, investors, or sponsors.

A cash flow analysis determines the state of the business, the liquidity, and the solvency of the business. Therefore, cash flow analysis is essential to the business, as it reveals the balances and financial health, profitability, and sustainability. A cash flow statement can be achieved through a search on the firm’s balance sheets for the last two years. That implies comparing the difference between the years, income statements, profits or losses, and assets or liabilities that changed over time.

Reading Fiction to Improve EQ

For more than 20 years, Ronald St. Facile has been working in the field of accounting and finance. He is currently the senior accountant for Infinitte LLC. During his leisure hours Ronald St. Facile likes to read, a pastime which has a number of benefits.

One of the benefits of reading fiction is its positive effect on EQ. EQ stands for emotional intelligence, and it refers to our ability to perceive and control our emotions and our ability to be sensitive to the emotions of the people around us. Reading fiction develops critical thinking and empathy, both of which are related to emotional intelligence. A high EQ level makes people more resilient to tough situations and better able to work with others.

Reading fiction improves the ability to sense the psychological state of other people and to act based on the perception - a quality called social acuity.

The characters and situations found in works of fiction provide reference points for difficult discussions. Discussions that depart from easily distinguishable labels such as good and evil take readers into areas where the line between what can be considered good or evil are not so clear-cut, which is the case in many life situations. These reading experiences deepen empathy and encourage open-minded thinking. People who are exposed to and discuss this kind of literature tend to be more open to tackling tough problems.

Another benefit of reading fiction related to EQ is that it helps prevent people from making quick judgments on various issues. The need to decide quickly regarding an issue is called cognitive closure. People with a high need for cognitive closure tend to rush to judgment, and furthermore tend to refuse to change their mind even with the advent of new information. It has been observed that people who read short stories, as opposed to essays, tend to delay decisions and, even after decisions are made, are more open to changing their minds in light of new information. 

Improving Financial Inclusion in Haiti

Since 2009, financial professional Ronald St Facile has operated multiple businesses in Florida and Haiti. For the past few decades, Ronald St Facile has also implemented interventions that promote financial inclusion, especially in Haiti.

As of 2019, nearly 60 percent of the Haitian population lives below the poverty line. The vast majority of Haiti’s banking institutions are located in the capital, which perpetuates financial exclusion. Many of the poorest Haitians cannot access resources such as business loans or savings accounts that could improve their financial situation. Without access to banking, these residents have difficulty receiving remittances from family members overseas, a huge driver of the Haitian economy.

Bringing financial products and services to the most remote areas of Haiti can greatly increase rates of financial inclusion. Microfinance loan programs can also help individuals secure small amounts of funding to finance their children’s education or start a business. Improving residents’ financial literacy can also reduce vulnerability to external economic shocks by increasing savings rates and following long-term financial plans.