If everyone involved in the process of accounting followed their own system, or no system at all, there’s be no way to truly tell whether a company was profitable or not. Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just […]
Accountants are responsible for preparing three primary types of financial statements for a business. The income statement reports the profit-making activities of the business and the bottom-line profit or loss for a specified period. The balance sheets reports the financial position of the business at a specific point in time, ofteh the last day of […]
It might seem like a no-brainer to define just exactly what profit and loss are. But of course these have definitions like everything else. Profit can be called different things, for a start. It’s sometimes called net income or net earnings. Businesses that sell products and services generate profit from the sales of those products […]
Accounting has been defined as, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: “facilitating the administration of economic activity. This function has two closely related phases: 1) measuring and arraying economic data; and 2) communicating the results of this process to interested parties.”
Let’s face it, we could all use a little help achieving our goals and improving our productivity. The key to doing this is to figure out what you want and make a list of your priorities.
Anyone who’s worked in an office at some point or another has had to go to accounting. They’re the people who pay and send out the bills that keep the business running. They do a lot more than that, though. Sometimes referred to as “bean counters” they also keep their eye on profits, costs and […]
When starting a new business, the details may seem overwhelming. Many things that seem simple, like buying insurance, become more complicated when you add a business into the mix. That’s why it’s important to understand what kind of insurance is available, what you need and what you don’t.
There are several different types of legal set-ups for you to choose from. Each have their own set of rules, advantages, and disadvantages. Here is a quick overview of business structures you can choose from.
In business, there is always going to be some element of risk. No matter what your do, no matter how stable, there’s always a chance that something will go wrong. It’s just that some business plans are more risky than others, but those are usually the ones with the most to gain. Making money and […]