Ed Barton, LLM, CPA, CFA

Finance

[Series] What Every Entrepreneur Needs to Know About Accounting – Investing and Financing Activities

Investing Activities Another portion of the statement of cash flows reports on how your company grows and improves itself. Financing Activities A company’s financing process is the lifeline for its business growth. If a company does not have enough internal cash flow, it can turn to external sources to finance acquisitions and other projects that […]

[Series] What Every Entrepreneur Needs to Know About Accounting – Inventory, and Prepaid Expenses

The lagging behind the effect of cash flow is the price you’ll pay for business growth. Managers and investors alike need to understand that increasing sales without expanding their accounts receivable isn’t a realistic scenario for revenue growth. In the real world, it’s just not possible to enjoy increased earnings without incurring additional costs. Read […]

[Series] What Every Entrepreneur Needs to Know About Accounting – Accounts Receivable Management

Accounts Receivable Management One of the more complicated accounting items is accounts receivable, and in most businesses, these make up a large portion of assets. In other words, they cause cash flow delays in a business through the delayed payment on sales and expenses. As an example for calculating them, imagine that your company offers […]

[Series] What Every Entrepreneur Needs to Know About Accounting – What’s A Balance Sheet?

Although cash flows and income statements are different, they both have their own unique qualities. The income statement reports profits in quantifiable terms while categorizing them under three headings: revenues, expenses, and earnings per share (EPS). On the other hand, the statement of cash flows provides a more detailed overview of how changes in liquidity […]

[Series] What Every Entrepreneur Needs to Know About Accounting – Gains and Losses

What Are Extraordinary Gains and Losses Business is a cyclical process. The recording of selling and shipping goods to customers normally is just reported as ordinary profit and loss. So what happens when there are unusual disruptions like changes in business climate or cost? Accountants are faced with reporting these losses and gains as well. […]

[Series] What Every Entrepreneur Needs to Know About Accounting – Making A Profit

  As an accountant, you are responsible for preparing three primary types of financial statements representing a business. The income statement reports the profit-making activities and bottom line profits or losses generated by your company over specified periods of time. The balance sheet is a snapshot of the company’s financial position at one point in […]

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