Small Business Accounting - Financial Statement and Tax Information
While it may not be the most exciting part of your business, keeping proper small business accounting records and financial statements is clearly one of the most important things a business owner can do. At some point, you may need to raise capital from a financial institution or lender, and if your books are not current or accurate it can jeopardize or risk losing your financing. In addition to keeping your records up to date, paying and recording the proper taxes are imperative, so as not to risk penalties and fines from the state and federal government.
Getting Started (Basic Accounting)
- How To Create a Business Plan - A business plan is having a clear vision of the type of business you want and a detailed plan of how you will get there answering the "who", "what", "why", and "how" of the business.
- The Difference Between Cash-Basis and Accrual-Basis Accounting For Your Business - There are two ways that you can organize your accounting records - either "accrual-basis" or "cash-basis". See which best suits your business.
- The Difference Between Major Business Structures - The three major business structures are Sole Proprietorship, Limited Liability Company, and Corporation.
Understanding Standard Financial Reports
- How to Create and Read a Balance Sheet - The Balance Sheet is a picture of what your business looks like financially at any moment in time.
- How to Create and Read an Income Statement - The Income Statement states the overall performance of the company from an operational standpoint. Also called the "P&L".
- How to Create and Use a Cash Flow Budget - A Cash Flow Budget is a way for you to predict how much cash you will have on hand at any given time, thus knowing ahead of time if you will be able to meet obligations, such as payroll.
Analyzing Financial Performance
- Metrics to Help You Understand Profitability - Check out these four metrics that are useful to helping you understand profitability: Gross Profit Margin Ratio, Net Profit Margin Ratio, Profitability Index Ratio, Economic Value Added Ratio.
- Metrics to Help You Manage Cash - Metrics are very useful tools in helping you manage your cash by allowing you to compare certain metrics to prior periods of time to see where your business is headed.
- Metrics to Help You Manage Debt, Assets, and Investments - It's helpful to utilize different metrics' to help determine how well you are managing your debts, assets, and investments.
Making Smart Financial Decisions
- The Basics of Budgeting and Forecasting - For any business to be a success, it needs a plan and a forecast. Let's examine exactly what those two business tools are all about.
- Developing a Pricing Strategy - So, what should you be charging for the product or service your business provides? This is no time for guessing. It's time to learn how to develop a pricing strategy.
- Deciding On the Right Type of Insurance for Your Business - In business, the question is not if you need insurance, it's how many types of insurance you truly need. Let's examine the most common types.
- Deciding On Leasing or Purchasing Equipment for Your Business - To lease or to buy, that is the question. Let's examine the pros and cons of both for your business needs.
- Using the Break-Even Analysis Formula to Assist With Making Financial Decisions - As a business owner, you'll have to decide if a particular action is worth the time and money to get it started. How do you make that determination? It's called the break even analysis formula.
- Understanding How to Borrow Money To Finance Your Business - At some point your business will probably need to borrow money. It's time to examine short and long term financing and the so-called "five C's".
- How to Determine the Worth of Your Business - What is your business worth? There are very specific ways to measure this and we will now examine them with you.
- An Overview of Depreciation - Exactly what is depreciation and how do you calculate how much something has depreciated? We have the formulas for you.
- Understanding the Various Payroll Taxes - One of the duties of any employer is payroll and dealing with a variety of payroll taxes. Let's examine what those taxes are and your role in getting them paid.
- The Difference between Contractor and Employee Status - What's the difference between an employee and a contractor and what you, as the business owner, need to understand when it comes to paying their payroll taxes.
- How to Deduct Your Vehicle Expense - Yes, you can deduct vehicle expenses for your company. What you need to understand is which of the two accepted methods you should use.
- Determining if You Can Deduct Your Home Office From Your Taxes - We're seeing more people chose to work from home. There are tax deductions many of them can use. Let's examine the rules of home office deductions.
- Understanding the Meal and Entertainment Tax Deductions - When is a meal or entertainment expense legitimate in the eyes of the IRS? Let's take a look.