All businesses have assets. Assets can be broken down into two categories: tangible and intangible. Understand the difference between tangible vs. intangible assets to keep your accounting books and financial statements accurate.
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When it comes to managing your business’s finances, you can never be too organized. Creating financial statements paints a picture of your company’s financial health. Financial statements help with decision making and your ability to get outside financing. One statement you could create is the retained earnings statement.
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Business expenses are categorized as either fixed or variable costs. You should identify your company’s fixed and variable expenses for accurate books. Learn the difference between fixed vs. variable costs to help with budgeting, pricing, and decision making.
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Whether you’re a business or individual, you can’t escape taxes. As a small business owner, your taxes depend on the type of business structure you have, such as sole proprietorships or partnerships. Regardless of your business entity, there are legal tax shelters for small business that can reduce your taxable income.
Read More The 411 on Tax Shelters for Small Business
Managing accounting is just one of your business owner responsibilities. But for many, it can be overwhelming and nerve-racking. Your first instinct might be to outsource all your accounting tasks to an accountant. However, there are many financial tasks you can, and should, manage on your own.
Read More Business Owner Responsibilities You Can Manage: Financial Tasks
As a business owner, you have many types of assets. Knowing how much your assets are worth is necessary for properly creating financial statements, obtaining outside financing, and selling your property. But, assets don’t retain the same value throughout their life cycle. You need to know the difference between book value vs. market value to […]
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Having accurate accounting books is essential for making financial decisions, securing financing, and drafting financial statements. But sometimes, you find gaps in your records, either from making mistakes or carrying out transactions from one accounting period to another. To combat discrepancies and get your records in order, you need to create adjusting entries. What are […]
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To run your business, you likely rely on assets such as equipment, your building, a company car, inventory, and cash. And if you want to maintain your books, create financial statements, and determine the theoretical value of your property, you need to calculate book value. What is book value?
Read More Navigate Through Book Value Calculations to Evaluate Your Business’s Worth
When structuring your business, you must follow each entity’s formation requirements, such as registering with your state, obtaining licenses and permits, and filing paperwork. If you decide to structure your business as a limited liability company (LLC), you must file articles of organization. What are articles of organization?
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If you run a nonprofit organization, your accounting responsibilities are different than those of for-profit businesses. Nonprofit organizations handle tax payments, financial statements, and recordkeeping differently than other businesses. Learn about nonprofit accounting below.
Read More Nonprofit Accounting: Mastering the Fundamentals