Your roof starts leaking. So, you hire a contractor to put in a new one. At the end of the job, you receive a piece of paper (an invoice) from the contractor billing you for their services. And if your business sells goods or services to customers and doesn’t collect money immediately, you’ll also have […]
Read More What Is an Invoice? That’ll Be $400, Net 30
Unless you own a service-based business, you likely have inventory. Knowing how much inventory you have is crucial for managing accurate small business accounting books, ordering new stock, and making pricing decisions. So, what is inventory?
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As a business owner, you likely borrow money to help fund your startup. And when you need a business loan, lenders typically charge you interest. So, what is interest?
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If you’re like many small businesses, you account for company assets that you can see and touch. But, what about the items of value that aren’t physical? You may be undervaluing your business by forgetting your intangible assets. What are intangible assets?
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As a business owner, you might need to hire a worker at some point or another. And depending on your type of business, you might need to hire employees, independent contractors, or both to get the job done.
Read More What Is an Independent Contractor?
At some point or another, you may decide to incorporate your company. Like many things in business, incorporation has its advantages and disadvantages. Read on to learn the pros and cons of incorporating a business to determine if it’s a good fit for your company.
Read More What are the Pros and Cons of Incorporating a Business?
Quick: Off the top of your head, how much money is your business bringing in? How much are you spending? At some point, investors, lenders, and (cough) you will need to know. But don’t panic when someone asks about your company’s revenue and expenses. Just whip out your income statement. What is an income statement, […]
Read More What Is an Income Statement?
As a small business owner, you need to track your income and expenses. And to organize your business finances, you must select an accounting method. One method you can choose is modified cash-basis accounting, or hybrid accounting. Learn the ins and outs of the modified method, how it differs from other accounting methods, and its […]
Read More Modified Cash-basis Accounting: How Does it Differ From Other Accounting Methods?
Do you know how profitable your small business’s operations are? You don’t have to be a financial expert to find out. You can calculate your gross profit to compare the funds you put into your business.
Read More What Is Gross Profit?
As a business owner, you calculate a variety of figures to determine your company’s financial health. One of these figures to keep on your radar is gross margin. Read on to learn what is gross margin and how it can help you set prices for your goods or services.
Read More Gross Margin Definition, and How Can it Help Determine Profitability?