Want to grow your business?
You better know your numbers.
Accounting Resources
Christian Startups
12th MAY 2008
Join other Christian business owners for a discussion of biblical principles in the marketplace.
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Top Accounting Articles
Growth By Numbers
12th MAY 2008
This is your business. You are the entrepreneur, the leader, the manager, the investor. You are responsible for growing your business. Understanding your business' finances reduces the risk involved in being an entrepreneur. No amount of planning, estimating, or calculating can prevent failure, but having a firm grasp of accounting basics will show you where to make changes to avoid problems and find growth.
If your understanding of entrepreneurial accounting is limited to checking account and credit card balances, you are in a dangerous place. Simply having the immediate cash on hand, while important, is not necessarily enough to keep your business afloat. While you may have heard the old adage stated as fact, "Cash is King", it is only partially true. In addition to have properly timed cash inflows, a business positioned for growth will also be showing a profit in the same or recent accounting period. It is possible to show a profit, but have no cashflow. It is also possible to have substantial cashflow, but show a negative profit. In either case, the business may be able to survive for some amount of time, either through existing cashflow, loans, or equity investments. However, over time (usually, much sooner when cashflow is the issue) the business will no longer be able to meet its expenses.
The solution to this problem is simple: understand your numbers. Depending on your situation, you may need to do the bulk of your own book-keeping (data entry, statement reconciliation, etc), but you should have an accountant verify your work and point out any areas hiding potential problems. As these areas are explained, be sure to note how they were identified so that you may identify future areas.
Of course, when is the easiest time to get a firm grip on accounting? During the startup stage! The startup stage is perfect for learning accounting due to the minimal number of transactions occurring. Starting a new venture requires an entrepreneur to perform every imaginable function, from cleaning to strategic decision making. Whether you enjoy it or not, accounting is an absolute necessity.
Accounting Terminology
12th MAY 2008
Entrepreneurs who understand accounting terminology benefit in both increased knowledge of their business as well as a decrease in expense for professional accounting services. When communication between an entrepreneur and an accountant is smooth and flows in a common language, the time will be more productive, resulting in less time being needed. To make it easier, we've listed 14 words that are essential for the entrepreneur accountant. Read More >
Understanding Your Balance Sheet
12th MAY 2008
This includes the summary of assets, liabilities, and net worth of a business at the end of a monthly or yearly accounting period. A Balance Sheet includes current assets such as a cash, accounts receivables, and inventory, as well as long-term assets such as property and equipment. Liabilities that are listed as current include accounts payable and current loan amounts, as well as long-term portions of loans, mortgages, and notes. Read More >
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