The Essentials of Keeping Your Business Accounts

If you keep your small business's financial accounts yourself — or if you simply need to understand what those accounts reveal — get the financial scoop on all things accounting, including how to interpret the bookkeeping information you deal with and what it means for your business.

The Purpose of Financial Reporting

Financial reports are the documents and records you put together to track and review how much money your business is making (or not). The purpose of financial reporting is to deliver this information to [more…]

Basic Bookkeeping for Your Small Business

Bookkeeping refers mainly to the record-keeping aspects of accounting. Bookkeeping is essentially the accounting process (some would say the drudgery) of recording all the information regarding the transactions [more…]

The Importance of a Bookkeeping Audit Trail

Good business bookkeeping systems leave good audit trails. An audit trail is a sequence of events leading up to a bookkeeping entry in your business's accounts. You start with the source documents and [more…]

Watching for Illegal Accounting Practices in Your Business

Fraud, embezzlement, and misappropriation can occur in every size of business. Such illegal accounting practices require manipulation of a business’s accounts. Keep your eyes open for these kinds of illegal [more…]

How to Read a Business Balance Sheet

When you read through your business's balance sheet, like the balance sheet shown in this figure, you may notice that it doesn’t have a "punch line" like the income statement does. You can’t look at just [more…]

What You Put in a Business Balance Sheet

A balance sheet is the financial condition of your business at an instant in time. In your business balance sheet, you must put financial information that's in constant motion because the activities of [more…]

How to Read an Income Statement

Some aspects of income statements may seem obvious, but other parts of income statements might leave you stumped. You need to identify the parts of an income statement and to know what they mean before [more…]

Choosing an Accounting Method for the Cost of Goods Sold Expense

One main accounting decision companies that sell products must make is which method to use to record the cost of goods sold expense, which is the sum of the costs of the products sold to customers during [more…]

How to Analyze Your Business's Profit

Analyzing your business's profit is not rocket science: Basically, you just need to determine how and why your business is (or isn't) making a profit. To figure out your business's profit history over [more…]

Examining End-of-Period Bookkeeping Procedures

Even if all transactions during the year (or other business period) have been recorded correctly, the business's accounts still aren't quite ready for preparing the financial statements. Additional procedures [more…]

How to Read an Auditor's Report

Your business's financial statement audit report can give your business a clean bill of health, or the auditor's report may state that your financial statements are misleading and should not be relied [more…]

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