What is Accounting About?
Well, accounting sounds like a dry topic, extremely boring but is extremely important to understand and this is what will allow any business owners to take any important decisions in their business. Accounting expresses in figures and financial reports what your business is about and how good of a manager you are. This is it. No more. And this really is Accounting Made Easy.
And then of course, you need to understand the language that is being used to make sure that you are in line with whoever you are addressing and you are discussing your finances with.
See, what happens most of the times with business owners is that they are so busy with running their business that they forget to look at the most important part of the jigsaw: their finances. They leave it to their accountant. But guess what? Your Accountant is NOT your financial planner. He will just create your financial accounts based on the information you gave him. And his job is DONE!
So what you need to bear in mind is the following:
1. Whenever you think of your financial accounts, ask yourself the following questions: who is going to look at them? And what are they looking for? Here there are 3 categories of people who want to look at them
a. Yourself as business owners in order to make important decisions for your business and make more money. In that case have some Accounting 101 sessions might be helpful to grasp what you need to focus on in your business.
b. Lenders: whenever you want to apply for a business loan, they will assess your credit strength and will therefore for through your financial statements very thoroughly
c. Auditors: this is often for companies of a larger size, whereby auditing just means proof-checking that your accounts are correct and reflect the reality of your business. ]
2. The second thing you need to think about whenever you think of your financial accounts is to to think of them as the following
a. Your Income Statement or Profit and Loss Statement = Performance of your Business
b. Balance Sheet = Strength of my business and Funding Profile Stability
c. Cash Flow Statement = Cash Flow Management and Debt Repayment Capacity
It's that simple and really is Accounting Made Easy. Once you have these concepts, you have the big picture of what accounting is about and you are ready to go more in-depth into the details of your financial statement and use them to make more money. There are several options to learn accounting. I would highly recommend Accounting 101 which is to me the best formula to get an Accounting Made Easy version as you will have your questions directly answered instead of struggling with some academic books and feeling overwhelmed by them.
Business Finances Made Easy's mission is to help business owners getting an accurate understanding of their business finances. This will allow them to be able to discuss their business finances at any time with confidence and will help them to get additional funding on demand.
Article Source: http://EzineArticles.com/?expert=Sabrina_Antou
Well, accounting sounds like a dry topic, extremely boring but is extremely important to understand and this is what will allow any business owners to take any important decisions in their business. Accounting expresses in figures and financial reports what your business is about and how good of a manager you are. This is it. No more. And this really is Accounting Made Easy.
And then of course, you need to understand the language that is being used to make sure that you are in line with whoever you are addressing and you are discussing your finances with.
See, what happens most of the times with business owners is that they are so busy with running their business that they forget to look at the most important part of the jigsaw: their finances. They leave it to their accountant. But guess what? Your Accountant is NOT your financial planner. He will just create your financial accounts based on the information you gave him. And his job is DONE!
So what you need to bear in mind is the following:
1. Whenever you think of your financial accounts, ask yourself the following questions: who is going to look at them? And what are they looking for? Here there are 3 categories of people who want to look at them
a. Yourself as business owners in order to make important decisions for your business and make more money. In that case have some Accounting 101 sessions might be helpful to grasp what you need to focus on in your business.
b. Lenders: whenever you want to apply for a business loan, they will assess your credit strength and will therefore for through your financial statements very thoroughly
c. Auditors: this is often for companies of a larger size, whereby auditing just means proof-checking that your accounts are correct and reflect the reality of your business. ]
2. The second thing you need to think about whenever you think of your financial accounts is to to think of them as the following
a. Your Income Statement or Profit and Loss Statement = Performance of your Business
b. Balance Sheet = Strength of my business and Funding Profile Stability
c. Cash Flow Statement = Cash Flow Management and Debt Repayment Capacity
It's that simple and really is Accounting Made Easy. Once you have these concepts, you have the big picture of what accounting is about and you are ready to go more in-depth into the details of your financial statement and use them to make more money. There are several options to learn accounting. I would highly recommend Accounting 101 which is to me the best formula to get an Accounting Made Easy version as you will have your questions directly answered instead of struggling with some academic books and feeling overwhelmed by them.
Business Finances Made Easy's mission is to help business owners getting an accurate understanding of their business finances. This will allow them to be able to discuss their business finances at any time with confidence and will help them to get additional funding on demand.
Article Source: http://EzineArticles.com/?expert=Sabrina_Antou
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