Retained earnings are a key indicator of a company’s financial performance. Read on to learn about what they are, how to calculate them, prepare a retained earnings statement, and more. What is the difference between retained earnings, revenue, net income, and shareholders’ equity? Retained earnings represent the portion of a company’s net income
If you’re managing a business—and your books—you’ve probably had to learn what is accounts payable vs. accounts receivable. Accounts payable and accounts receivable are two different sides of the same coin. In this case, the coin is your business. One tracks money that is going out. The other tracks money coming in. Both
When a small business makes sales on credit, there’s a chance of having bad debt expenses. Most businesses use the bad debt expense formula to account for them. Even the customers with the highest credit record can go bankrupt and fail to pay their debts. Tracking and recording these debts gives you an
Balance sheets and income statements are indispensable financial tools for all business owners. What should businesses know about the balance sheet vs. income statement? The two complement each other in tracking vital financial metrics such as net income, expenses, profitability, and more. However, there are differences between the two documents. Understanding these statements
If you run a business, you’ve likely wondered–how much does it cost to hire a tax accountant? Do I need accounting services, and will they save me more money than they cost? While doing accounting and business taxes, you may worry about making mistakes or missing opportunities that a pro would spot right
If you are reading this, then it probably means you’ve just launched or intend to start a new business in the near future. As you try to figure out which need to prioritize in your new venture, it is crucial that you first learn how to set up accounting for a new business.
As tax season looms, you may be wondering whether you should have an accountant prepare your taxes. In addition to considering how much an accountant costs, you’ll also want to consider how long an accountant will take to do taxes compared to trying to do it yourself. How do you know when to
Author’s Note: This blog post was updated on February 22, 2022, to include new information, resources, and links. Accounting for startups means more than just keeping up-to-date financial statements and records. Startup founders wear many hats, from sales to accounting. Accounting may not be on the top of the list, but it is
This year, make things easier on yourself by planning ahead. You’ll thank yourself for filing business taxes according to the prescribed deadlines. Not only will this save you from sweating over a shoebox full of receipts, but making on-time tax payments will save you from any late fees or interest payments. To help
Tax season can be stressful, especially if your books are behind, inaccurate, or both. We estimate that roughly 25% of small businesses seek information on how to catch up on business taxes and get their financial records in order. The benefits of clean, accurate books extend far beyond tax season. When your books
Retained earnings are a key indicator of a company’s financial performance. Read on to learn about what they are, how to calculate them, prepare a retained earnings statement, and more. What is the difference between retained earnings, revenue, net income, and shareholders’ equity? Retained earnings represent the portion of a company’s net income
If you’re managing a business—and your books—you’ve probably had to learn what is accounts payable vs. accounts receivable. Accounts payable and accounts receivable are two different sides of the same coin. In this case, the coin is your business. One tracks money that is going out. The other tracks money coming in. Both
When a small business makes sales on credit, there’s a chance of having bad debt expenses. Most businesses use the bad debt expense formula to account for them. Even the customers with the highest credit record can go bankrupt and fail to pay their debts. Tracking and recording these debts gives you an
Balance sheets and income statements are indispensable financial tools for all business owners. What should businesses know about the balance sheet vs. income statement? The two complement each other in tracking vital financial metrics such as net income, expenses, profitability, and more. However, there are differences between the two documents. Understanding these statements
If you run a business, you’ve likely wondered–how much does it cost to hire a tax accountant? Do I need accounting services, and will they save me more money than they cost? While doing accounting and business taxes, you may worry about making mistakes or missing opportunities that a pro would spot right
If you are reading this, then it probably means you’ve just launched or intend to start a new business in the near future. As you try to figure out which need to prioritize in your new venture, it is crucial that you first learn how to set up accounting for a new business.
As tax season looms, you may be wondering whether you should have an accountant prepare your taxes. In addition to considering how much an accountant costs, you’ll also want to consider how long an accountant will take to do taxes compared to trying to do it yourself. How do you know when to
Author’s Note: This blog post was updated on February 22, 2022, to include new information, resources, and links. Accounting for startups means more than just keeping up-to-date financial statements and records. Startup founders wear many hats, from sales to accounting. Accounting may not be on the top of the list, but it is
This year, make things easier on yourself by planning ahead. You’ll thank yourself for filing business taxes according to the prescribed deadlines. Not only will this save you from sweating over a shoebox full of receipts, but making on-time tax payments will save you from any late fees or interest payments. To help
Tax season can be stressful, especially if your books are behind, inaccurate, or both. We estimate that roughly 25% of small businesses seek information on how to catch up on business taxes and get their financial records in order. The benefits of clean, accurate books extend far beyond tax season. When your books
