Accounting Lessons

Understanding Financial Statements

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 …

Understanding Financial Statements Read More »

Financial Ratio Analysis

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. …

Financial Ratio Analysis Read More »

How to Figure Your Break-Even Point

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 …

How to Figure Your Break-Even Point Read More »

Accounts Receivables Accounting

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 …

Accounts Receivables Accounting Read More »