Lesson 5 in the Basic Accounting series: Understanding financial statements is one of the keys to your small business success. Sadly, many entrepreneurs fail not because they lack knowledge of their products and determination… but, because they failed to realize the importance of preparing and analyzing their financial statements. Analyzing and Understanding Financial Statements: Financial …
Lesson 6 in the Basic Accounting series: Financial ratios and performing a financial analysis using your financial statements can be a valuable tool in constructing a successful small business. Financial Ratio – Comparative Analysis Comparing your current financial statements to: previous years previous months previous quarters …can tell you how your business is doing financially. …
Lesson 7 in the Basic Accounting series: Your small business’s break-even point is the point where the total amount of revenue received equals your total costs associated with the sale of your product or service or a even simpler accounting definition is the point where your business does not make a profit or suffer a loss. Determining …
Lesson 8 in the Basic Accounting series: Cost accounting basics is all about learning how to use different accounting methods to determine the cost of producing your product and then how to use that information to make a profit. That is why cost accounting is often referred to as cost management accounting. As a small business owner …
Lesson 9 in the Basic Accounting series Accounts Receivables (AR) are sales made by your small business, but not paid for yet by customers. They are usually in the form of invoices generated by your small business and delivered to your customers for payment in an agreed upon time frame. Accounts Receivables Tips: Many businesses now only …