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What is a Balance Sheet

WEBA balance sheet is one of the most important financial statements that show a company’s assets, liabilities, and shareholders’ equity. This statement provides a snapshot of a …

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How to Read a Balance Sheet & Truly Understand It

WEBA balance sheet is one of the most important financial documents a business owner or manager can use to assess the health of their company. It lists all of the company’s …

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How to Read & Interpret a Cash Flow Statement

WEBThe first step in reading a cash flow statement is to find the net change in cash for each section. To do this, simply subtract the total amount of cash going out from the total …

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Amazon Seller Profit and Loss Statements (P&L) Explained

WEBAn Amazon Profit and Loss statement (P&L) is a financial report that summarizes the revenues, costs, and expenses of your business over a specific period. Creating a P&L …

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Which Financial Statement Is Prepared First & Why

WEBIt is crucial to understand which financial statement is prepared first and why. The income statement should always be prepared before other statements because it provides an …

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Accounting Basics 101: What Small Business Owners Must Know

WEB2. Balance Sheet. Definition: The Balance Sheet is a financial statement that provides a snapshot of a business’s financial position at a specific point in time. It presents a …

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Owner's Equity What It Is, How to Calculate It & Examples

WEBHere are a few examples: -If a business has $10,000 in assets and $8,000 in liabilities, then the owner’s equity would be $2,000. -If a sole proprietor earns $30,000 in one year and …

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Free Balance Sheet Template for Google Sheets, Excel, or PDF

WEBIncorporating a free balance sheet template for Google Sheets, Excel, or PDF into your financial management tool kit can significantly simplify your tracking and analysis …

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What is Retained Earnings on a Balance Sheet

WEBRetained Earnings=Beginning Retained Earnings+Net Income−Dividends. Retained Earnings = $10,000 + $5,000 – $2,000. Retained Earnings = $13,000. Example 2: …

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7 Bookkeeping Basics for Entrepreneurs to Understand

WEB1. Separate Personal and Business Expenses. One of the most important bookkeeping basics for entrepreneurs is to keep personal and business expenses separate. This can …

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Double Declining Balance Method for Depreciation (With Examples)

WEBLet’s illustrate the Double Declining Balance Method with a concrete example: Suppose a company purchases a piece of machinery for $10,000, and the estimated useful life of …

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The Ultimate 2023 Guide to Amazon Seller Reports

WEBAmazon reports are a crucial tool for any seller looking to optimize their sales strategies and boost their revenue. These reports provide valuable insights into various aspects of your …

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Journal Entry Examples (Easy-to-Understand)

WEBDescription or Narrative: Offering a brief explanation of the transaction for clarity and context. Example: Consider a business takes out a loan of $10,000. The journal entry …

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10 Reasons Why You Should Hire a Bookkeeper w/ Pros & Cons

WEBA bookkeeper helps by assisting in setting up payment terms, reminding you and the client of payment dates, and setting up beneficial accounting automations through your …

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Why Are Financial Statements Important for Business Owners

WEBAs a business owner, keeping tabs on your financial statements is essential to the success of your company. Financial statements provide valuable insights into the financial health …

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50 Accounting Terms, Definitions, & Explanations for Business …

WEBThe balance sheet follows the fundamental accounting equation: Assets = Liabilities + Shareholders’ Equity. It helps entrepreneurs understand their company’s net worth and …

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Which Account Does Not Appear on the Balance Sheet

WEBOperating Leases: Operating leases involve renting assets such as equipment or property for a specific period without transferring ownership. These leases do not show up as …

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W2 vs 1099 Workers: Know the Difference Before Hiring

WEBThe primary distinction between W2 vs 1099 workers lies in their employment relationship. W2 workers are considered employees, and their employers have a greater level of …

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Cash Flow Statement Example, Analysis, & Explanation

WEBAnalyzing a cash flow statement is essential to understanding a business’s financial health. The first step in analyzing this statement is to evaluate the three sections – operating …

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