HumanBookkeeping.com™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what EBITDA means. If we can be of more help explaining whatEBITDA is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-994-8626(888-99HUMAN).HumanBookkeeping.com™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what EBITDA means:

Earnings Before Interest Tax Depreciation and Amortization. EBITDA is calculated by adding back all adjustments made for interest, tax, depreciation, and amortization on net income.As a result, this calculated number should reflect the core operational results of the business, without regard for financing and tax strategy and asset management.

EBITDA is often used by financial analysts as a proxy for free cash flow, to create projections of future earnings and to estimate the market value of a business.

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