Standard Operating Expenses – All about Depreciation Depreciation is the accounting way of measuring the wear and tear on your fixed assets. Although it has no impact on cash, it is part of your expenses. That means it lowers your company’s net income, which means lower taxes. When you buy assets, you don’t get to … Read more
Keeping Track of Transactions – What Counts as a Transaction A business transaction takes place when an event that can be measured in terms of money has occurred. There are dozens, probably hundreds, of events that happen in any business on any given day that have no monetary effect: opening the mail, talking on the … Read more
The Basic Accounts – Revenues, Costs, and Expenses New and small-business owners tend to track their profit-related accounts more than any others. There’s a good reason for this: Without pretty consistent profits, no business can survive for the long haul. There are three numbers that go into figuring out profits: revenues, costs, and expenses. Every … Read more
Accounting Is More Than Numbers – Different Versions for Different Reasons In addition to you, there may be a lot of people who want to see how your business is doing. This includes your own employees, who may need to track particular numbers to get their jobs done; your accountant, who needs the numbers in … Read more
