You may think that you did everything right and if you’re using an accounting software, such a situation should not even arise. However, presuming here that you haven’t bought an accounting software and are still doing your accounts either on paper or in Excel or some other form of method, situations like “my balance sheet does not equal” are bound to happen. Continue reading
Effectively there are two ways of “owning” an asset – leasing it or buying it. Yes, leasing refers to renting it and actually buying the asset means you can get a hold of the factual ownership, however, most importantly, with both forms you can use the asset and that’s what we’re on about at the moment. Continue reading
Stuff happens and as it happens, there’s no reason to think why and how bad it is, but rather just move on. Obviously you should (if needed and possible for the situation) come up with actions to take so this doesn’t happen again, but more importantly, you now need to sort out your statements for the period! Continue reading
It depends. Everything depends, I know, but in a situation like this, the answer depends on why the sale was credited: Continue reading
With selling goods, your “cost of sales” is the expense you made to initially buy the goods. First off they’re in inventory on the balance sheet and as you sell them, they’re taken off from the inventory and shown on the income statement as an expense made to make a sale. Now with services, there are usually no goods. Continue reading
It’s always a good question. Some might say that there’s never enough money and others may say that enough is when it’s enough. Both are similarly vague and not really accurate. Continue reading
So you’ve decided to deal with cash payments (well, decided or forced, doesn’t really matter), but have you considered all the risks there are? Have you mitigated them to an acceptable level for you? Continue reading
The decision whether or not to use cash payments in your business comes mostly down to need. Do you need to deal in cash? Taking into consideration all the risks there are, it’s always down to “need” and not “choice”. Continue reading
First and foremost, keep it simple and structured. It only gets messy and stressful if you have to do it ad hoc. It may sound like a cliché, but don’t panic! You can do it all if you just keep a cool head and have it all structured. Continue reading
Running a business is all about funds – resources needed for investing, paying your suppliers, paying your employees and at the end of it all, also paying your owners (in the form of dividends). Continue reading