As an accountant, you prepare three primary 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. The balance sheet is a snapshot of the company’s financial position at one point in time and includes everything from accounts receivable to shareholder… Continue reading What Is Profit? – Crucial Elements You Need To Know
Category: Accounting Basics Series
What is Personal Accounting – Crucial Things You Need To Know
What Is Personal Accounting? As an entrepreneur, you need to keep score – not only for your business – but for yourself. Personal accounting is the accounting and bookkeeping you do for your finances and is handled a little differently than your business accounting. Knowing these differences and keeping them separate will help you keep… Continue reading What is Personal Accounting – Crucial Things You Need To Know
Bookkeeping Basics
What’s The Difference Between Accounting and Bookkeeping? It is a common misconception that bookkeeping and accounting are the same things. While they both have to do with finances, one function of an accountant’s job is providing reports based on findings from work done by a bookkeeper. One of the many tasks a business accountant is… Continue reading Bookkeeping Basics
CPA or Controller – What’s The Difference?
CPA or Controller? Do you need a CPA or a controller? Accounting is a common occupation for those who want to use mathematical skills. There are many career paths within this profession, ranging from entry-level bookkeeping to a company’s Chief Financial Officer; however, one must have the necessary qualifications before obtaining these positions. One must… Continue reading CPA or Controller – What’s The Difference?
What is Bookkeeping?
What Is Bookkeeping? In a nutshell: What does a bookkeeper do? They work all day long and ensure the company’s finances are balanced by balancing budgets, recording transactions, and analyzing cash flows. The accounting department also calculates important metrics like your business’s gross margin or net profit. Although their jobs might seem dry at first… Continue reading What is Bookkeeping?
What is GAAP?
Following GAAP and knowing the rules and their proper application will help make your financial statements useful and keep you out of hot water. If you are looking for bite-sized chunks of accounting – given to business owners by the business owner, this is the right spot! What are GAAPs, and why are they essential… Continue reading What is GAAP?
Accounting Basics – What You Need to Know!
From the time we’re children, most of us learn to count. In turn, we start saving and spending money as adults to balance our checkbooks and improve our lives! No business, small or large, can avoid accounting basics. The accounting process is essential for any business. What is an accountant, and what do they do?… Continue reading Accounting Basics – What You Need to Know!