Category: Accounting

One important metric to track in your business is the profit margin. This ratio tells you how much profit your company makes on each dollar of sales. To maximize your margin, you must understand what factors influence it and how...

You know that cash flow is critical if you’re a business owner. It would be best to have a good handle on your cash flow to make sure your business is booming. But what is a cash flow forecast, and...

A cash flow statement is a document that shows how much cash your business has generated and used over a specific period. It can be helpful for companies of all sizes, as it can give insight into where money is...

The income statement (profit & loss) is a crucial financial document for businesses. This document shows how much revenue your company has generated over a specific period and the expenses incurred during that same period. By reading and interpreting this...

You may ask yourself what is a balance sheet if you are thinking of starting a business. The balance sheet is a financial document that uses the accounting equation to show what a company owns (assets), what it owes (liabilities), and what...

Hiring a professional bookkeeper to help you with your business is not only wise but necessary. There are many reasons keeping accurate records of your expenses and income can be difficult for any small business. This post will discuss why...

Reconciliation is an accounting term that means matching two sets of records. For example, bank reconciliation refers to comparing the balances provided by the bank statement against your business’s cash balance figure. Learning how to do a bank reconciliation for...