The main reason a small business owner needs business accounting is to run financial reports for owners to review this information to determine the business performance capabilities.? Running a business from the hip is reckless and unnecessary with the technology available today to track progress. The use of financial data helps a businesses evaluate and make intelligent decisions from the all transactions.? Reporting is mostly automated today by computer software, but there are some physical inventories that are necessary to accurately report assets.
It is important to a business professional to know business accounting equations.? The balanced accounting equations used in the United States are defined by Webster?s dictionary as assets that equal liabilities plus owner?s equity. The two sides of the equation must always be in balance.
The key is in the financial factors which when balanced pays for the business strategic initiatives.? Every business makes a financial decision that impacts a profit or loss margin.? This decision is best served with information determined from clear accounting practices.
It is important to understand double-entry accounting which is a system that records and separately records business transactions.? It is important to balance the books with debts in one ledger and assets in another ledger.
By listing the inventory of items purchased on credit is an increase in overall assets and the debt to purchase the assets as a liability this double entry keeps the ledger books balanced in the accounting process
It is important to understand the accounting cycle which is defined by answers.com as a series of steps that record financial based events from the time a transaction occurs to its reflection in the debit or asset ledger.? This is also referred to as bookkeeping cycle. This series of steps keep the business in compliance with industry legal guidelines and governmental regulations.
Like this:
Be the first to like this post.
Source: http://larrysgunter.com/2011/10/06/business-accounting-the-smart-choice/
susan powell jonah hill neutrinos neutrinos autumnal equinox rob bell jaycee dugard
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.