5 Accounting Terms You Must Know to Understand Financial Reports
Accounting has its own language. To have a meaningful conversation with your accountant, you must know the accounting terms they use. Five accounting terms you must know are: Net income Cash flow Invoice Accounts receivable (also called debtors) Accounts payable (also called creditors) WHAT IS…
I MADE A PROFIT BUT WHERE DID THE CASH GO?
I made a profit but where did the cash go? This is the surprised reaction when you make a profit but have no cash to show for it. You pay bills with cash and not profit. So, whilst you’ve made a profit, you may not…
A Simple Framework for thinking about your business
People often ask me, “how do you see the year going? Will it be a good year or a bad year?” I respond with a shrug and say, “Whether it’s a good year or a bad year for everyone else, we’ll make it a great…
How to choose an accounting year for your business
Choosing an accounting year end is important. Businesses must prepare business accounts for different reasons. These might include: To find out how the business has performed; To allow it to file for taxes. And to enable them to do that effectively, business owners must choose…
Take it from me, poor accounting is expensive!
I’m not talking hypothetically when I say poor accounting is expensive. Nor am I talking as an accountant with a vested interest in selling you my expertise. I’m talking as a business owner who, with the best of intentions, ended up with poor accounting for…
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