This blog includes 70+ bookkeeping and accounting articles about mastering and utilizing your financials for growth, like…
Start browsing, learning, and implementing these insights to grow your business.
What, 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 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 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 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.
Read moreProfit First Accounting revolutionizes the way small businesses approach their finances by placing profit at the forefront, instead of an afterthought. This financial management system, conceived by Mike Michalowicz, could prove transformative for your business. Today we’ll go through the core principles of Profit First Accounting, as well as how to set it up for
Read moreCOGS stands for Cost of Goods Sold. It only includes the costs of making your product without including any other business costs. This article will help you learn the basics of COGS: how it can help control costs, set the correct prices, and increase profits. This guide also relates to our articles on gross vs.
Read moreHaving a handle on expense reports is important for any business, but perhaps even more so for small business owners who need to track every dollar spent. We’re going to dig into what goes into an expense report, the benefits of accurate expense reporting, creating and reviewing the report, setting up policies and guidelines for
Read more