This blog includes 70+ bookkeeping and accounting articles about mastering and utilizing your financials for growth, like…
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Goodwill in accounting is the premium a business holds over and above its tangible assets, typically arising from its reputation, customer relationships, and brand value. In this article, we’ll explore what goodwill is, how it differs from other intangible assets, and what it means for small business owners. This guide is also related to our
Read moreThe short answer is that the controller manages day-to-day finances and reporting, while the CFO focuses on strategic planning and long-term financial health. In this article, we’ll break down the key differences and responsibilities, and how each role can impact your business growth. This guide is also related to our articles on CFO reports for
Read moreEffective bookkeeping helps coffee shop owners manage finances, monitor cash flow, and track profitability. Key components include recording sales, managing expenses, and preparing financial statements. In this article, we’ll explore essential bookkeeping terms, best practices, and tips to help you streamline your financial processes, headache-free! This guide is also related to our articles on how
Read moreChurn rate measures the percentage of customers who stop using your product or service over a specific time frame, and directly impacts growth, revenue, and customer loyalty. In this article, we’ll learn how to calculate churn rate, why it matters for your business, and strategies to reduce it. This guide is also related to our
Read moreWhat, you may be wondering, are the difference between these financial roles and what do they mean for your business? The short answer is that a bookkeeper handles daily transactions and record-keeping, while an accountant prepares financial statements and provides analysis. Tax preparers focus on filing taxes accurately, and controllers oversee financial operations. The CFO
Read moreTwo popular ways of looking at cash flow are the direct and indirect methods. Each comes with its own insights and advantages, so let’s explore what each method entails, their differences, and how to choose the right one for your situation. This guide is also related to our articles on how to do cash flow
Read moreContribution margin is what tells you, the small business owner, how much of your sales revenue is contributing to covering fixed costs and generating profit. Understanding this metric can revolutionize how you manage and price your products or services. In this article, we’ll go over the basics of contribution margin, show you how to calculate
Read moreYear-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
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