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GAAP, 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.
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 moreInventory is the goods a business has for sale, including raw materials, items being made, and finished products. This article provides an in-depth look at inventory and why it matters to your business. We’ll cover different types of inventory, the methods to value them, the basics of inventory accounting, challenges you may encounter, and best
Read moreAdjusting entries in accounting are important because they make sure your financial records show the right earnings and expenses for your business. They’re made at the end of each accounting period to make sure all the money you made and spent during that time is properly accounted for. In this article, we’ll explore the various
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