Xero is excellent for small businesses. It is an application to do your account which enable fulfilling most accounting tasks required for your small businesses. It is built on a true double-entry accounting framework. It allows business owners to track and manages sales, purchases, inventory and payroll by creating records for customers, suppliers, employees and [...]
Profit and Loss Statements, also commonly known as P&L or income statements, show you the profitability of your business over a given period of time. The Profit and Loss Statements are usually prepared monthly, quarterly, and yearly. The Importance Of Profit and Loss Statements First and foremost, companies are required by law to complete their [...]
A Balance Sheet, taken along with the Profit & Loss Statement and Cashflow Statement gives you a clear indication of your business’s financial health. You can think of the Balance Sheet as a scorecard that tells you about the financial health of your business at any given point in time. On it, it will have [...]
As an entrepreneur, it is very important for you to keep track of your money inflow and outflow. You need to be able to analyze your business’s financial health from different aspects. Your analysis is only as good as the quality of your data input. It is critical to get started with the right accounting [...]
Keeping an eye on your business cash flow is without a doubt a key component to monitoring the financial health of your business. Running short of cash is one of the most common causes of business failure for start-ups. The statement of cash flows, also commonly known as the cash flow statement, is the report [...]
Buildings, machinery, renovations and computer peripherals are an example of tangible assets that will last your business more than one year of usage. But not indefinitely as they will eventually become obsolete, thus we depreciate these assets' value over the term of their useful life. For intangible assets such as intellectual property and brands equity, [...]
