Financials are relatively meaningless without context. The context is what gives them their real weight, significance, and, well, meaning. Otherwise, they're just numbers on a page. For example, the same set of financial statements that'd be good news to a...
‘The Best Damn Small Business Newsletter on the Internet’ archives
Basics Article Archives
Your service offerings impact overall profitability (and personal fulfilment)
You started your business because you're good at what you do. That could be marketing, accounting (like me 😉), consulting, or something else. You're good at something and decided it was time to make more money for yourself (instead of earning a profit for your...
Cash vs accrual basis
Accounting seems simple, at first. It's just a bunch of transactions and numbers that need to be categorized and reported. But, when you report the numbers is a much bigger issue than you first realize. For simple transactions (like buying a slice of pizza), it's...
Back to basics: Profit & Loss vs Balance Sheet
The Profit and Loss report and Balance Sheet are two of accounting's most famous reports. Everyone's heard of them, every accounting software can generate them, and even the IRS is interested in them. And, they're famous for good reason. Together, they give you a big...