Continue reading "Stop the confusion with your financial statements"
Are you dealing with a lot of confusion when it comes to your financial statements? If it seems to be challenging and frustrating for you to manage your statements and to understand them, it may be time to contact a good financial advisor. They not only have the experience you need but they have extra tools that will help such as being able to provide you with tax preparation help and also payroll help. With tax laws changing all the time and a lot of confusion surrounding many of the laws, it helps to have someone that knows what they are doing and someone that can easily provide you with solid advice.
Continue reading "Smarter ways to create a balance sheet"
Are you a new business owner? As a new business owner you will need to quickly learn about a variety of different things like the balance sheet. Do you understand what the balance sheet is and what you need to do in order to make it work effectively? Creating your first balance sheet may seem like a daunting task and it can easily overwhelm you. A skilled financial advisor or a bookkeeper can help you with the creation of your balance sheet. The best way to avoid mistakes and to get your balance sheet to actually balance is by using a method called double entry bookkeeping. This article will guide you through the different parts of a balance sheet so you can understand exactly what it's all about.
Having a business budget in place is an essential part of running a business. Many times small businesses fail because of a lack of planning. Having a budget is the best way to plan, for the future growth and expansion of your business. This is true whether you are launching your first business, or have years of experience as an entrepreneur, the importance of having a budget cannot be overstated. This is because creating a budget, for your business will provide a guideline for expected income and expenses, and enable you to compare your anticipated financial goals, with the actual numbers. Your budget will serve as a barometer, for how your business is performing. Having a budget will also enable you to plan ahead, and determine any changes that should be considered.Continue reading "How to create a business budget"
Starting a business is exciting! It is easy to get caught up in the prospect of making lots of money while others did all the hard work. Now that you have started your business, you know that that is not the case. It takes a lot of long hours just to stay afloat, not to mention how challenging it can be to finance your business. If you are lucky enough to have gotten the money needed to get your business off the ground, you understand how important it is going to be to stick to a budget. Running your small business on a budget and cutting costs whenever possible is essential to good business finance.
Financial statements are a great way to mange your businesses finances because they are designed to provide you with an overview of your company's profitability and your business's short and long term financial condition. Your best bet when using financial statements to help manage your finances with your business is to prepare your financial statements on a quarterly basis, this gives you much better insight into how much money your company is making compared to spending.
Here is a closer look at the four types of financial statements, plus how the financial statements are used in business.Continue reading "Managing your finances through financial statements"
Knowing how to read a balance sheet is essential to making wise investment decisions, as well as knowing the financial stability of companies.
So what should a balance sheet tell you?
The balance sheet shows what a company owns and what it owes; if you use these two numbers, the difference shows you what the company is worth. A balance sheet is also known as a "statement of financial position", as it reveals a company's assets, liabilities and owners' equity (net worth). One thing to realize though is often this is not entirely accurate, as reality and what the paper says can have some discrepancies.
How to read a balance sheet and understand it. A balance sheet is like the holy grail of finances. The best way to read this ever so important document is with the trained eye of a person who is aware of what the document is about. There are several important sections of a balance sheet that are important to the business involved. Therefore, it is necessary to know what all those sections are.
In addition to the different sections, you need to be aware of the vocabulary involved. So lets start with some of the vocabulary you will find in balance sheets almost cryptic details.
Assets: The assets a company or individual has that could be converted easily to cash. This would be cash, securities, accounts receivables, inventory, office equipment, real estate, vehicles, or properties. Some of these assets are either easily converted into cash, and some are long term assets that take more time to turn to cash.
Liquid Assets: These are the assets that can be easily converted into cash. These are short term assets.