This blog includes 70+ bookkeeping and accounting articles about mastering and utilizing your financials for growth, like…
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Year-over-year (YoY) growth helps measure performance progression, with the formula being: (Value in Current Year − Value in Previous Year)/Value in Previous Year × 100. In this article, we will conduct a deep dive into the YoY growth formula, its significance, particularly to small businesses, and how to correctly calculate it and interpret the results–as
Read moreWhen it comes to managing your small business finances, understanding the debt to equity ratio (D/E ratio) can be a real gamechanger. The D/E ratio = total debt / total equity, and in this article we’ll cover what exactly debt and equity are, how to calculate the ratio, and how knowing it can help you.
Read moreThe Manufacturer’s Suggested Retail Price (MSRP) is the price that manufacturers recommend retailers sell their products at. In this article we’ll unpack the basics of the MSRP, both how it’s set and its role in marketing strategies and impact on retailers and consumer perceptions. This guide is also related to our articles on understanding gross
Read moreLiabilities in accounting represent what your business owes, including loans, accounts payable, and other debts. In this article, we’ll explain the different types of liabilities, how they impact your business, and ways to manage them. This guide is also related to our articles on accounting for startups, understanding debits and credits, and how to calculate
Read moreAccrued income, often overlooked, represents money earned but not yet received–important to grasp when using accrual basis accounting. This article is made specifically for small business owners. It breaks down the complexities of accrued income, offering clear examples and actionable insights. This guide is also related to our articles on cash vs. accrual accounting, mastering
Read moreGAAP, or Generally Accepted Accounting Principles, is the standardized framework for financial reporting in the United States. It ensures your financial statements are consistent, accurate, and reliable. In this guide, we’ll break down the key components of GAAP, discuss how it applies to your business, and provide tips on staying compliant with these important accounting
Read moreChoosing the right business entity is one of the most important decisions you’ll make when starting your business. What you choose affects everything—from how you’re taxed to your personal liability and the way your business can grow. In this article, we’ll cover the different business structures and their key advantages, disadvantages, and tax implications. This
Read moreIn today’s fast-paced business world, managing finances efficiently is super important for startups and small to medium-sized businesses (SMEs). As these companies work towards big goals—like securing deals, raising funds, and boosting profits—it’s crucial to use tools that not only simplify financial tasks but also give you the confidence that everything’s in order. That’s where
Read moreAs the old saying goes, numbers don’t lie. Understanding the basic principles of accounting is important for your startup’s financial health, setting a solid foundation on which to grow. In this article, we’ll go into the fundamental concepts and tools for startup accounting. From handling cash flow and budgeting to making sense of your financial
Read moreDebits and credits form the core of the double-entry accounting system, ensuring every transaction is recorded in two accounts: one debited and one credited. This method guarantees the accuracy of financial statements and the stability of financial management. Understanding debits and credits is essential for anyone looking to grasp the fundamentals of financial literacy and
Read morePro forma financial statements are financial reports that project a company’s future financial performance or simulate the impact of a potential event or decision. Used for planning and decision-making, they help small business owners gauge future financial health and make informed decisions. This article explains how pro forma financial statements assist in business planning, their
Read moreWhen a business finds itself unable to recover money it is owed from its customers for goods or services already provided, that amount is known as bad debt. It’s not an ideal situation, but it has to be faced, and by accurately accounting for bad debts, you can mitigate their effects as much as possible.
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