We all have heard the terms invoice and bill. However, I’m sure that not many of us are fully aware of the subtle differences between an invoice and a bill. Even I wasn’t, for several years after I started working. After running my business for over a decade, I’ve seen the confusion on people’s faces…
The duties of an accountant revolve around financial record keeping, decision-making, and other aspects that can ensure that the company thrives well in the market. An accountant or a bookkeeper must prepare and analyze the financial records of a company while managing data that can be analyzed and used for consultation. The bookkeeper is to…
If you own a business, your gains are subject to taxes by the government. Business owners often lose a big part of their gains to income taxes. Therefore, business owners need to understand how to identify tax deductions relevant to their field of work. Higher tax deductions for small businesses also equate to a faster…
Aamdani athnni Kharcha Rupaiya or Earning in pennies but expenditure in dollars. Every small and big business owner must be aware of this saying, especially during the start of their business journey. This is the why business owners should maintain a profit and loss report. It will not only help you understand your business’s financial health…
If you own or manage a company or know someone that does, you know that businesses account for all the expenses made for their upkeep. It is crucial to keep a journal of transactions made by them to maintain economic stability. This is what an accounting journal is. Several unaccounted transactions cause an imbalance…
When it comes to accounting and bookkeeping, Debit and Credit are the two words you shall come across the most often. You can have a better knowledge of the accounting process by learning how debit and credit function. It might even make it easier for you to understand complex accounting concepts. What is…
The Cost Of Goods sold is the direct cost of the goods produced by a firm. Now, what is the direct cost? It is the cost that can be related directly to any good or service. In this article, we will tell you everything about the cost of goods sold and how you can control…
Businesses run on the sole motive of keeping growing consistently and earning profits. But all days are not the same. They face some difficulties. What is important here is to constantly monitor the health of your business, the financial ratios and profit margins. The analysts need to constantly evaluate the firms ability to generate profits…
The Asset to Liability ratio of businesses can help assess their profitability and scope for growth accurately. Information regarding this ratio can help prepare financial statements for a company. Assets and liabilities are the foremost things to manage, especially in accounting. Financial statements include the Balance Sheet, the Cash Flow Sheet, and the Statement of…
Money is the primary component of a business. The prime goal of all business entities is to earn profit. Small business entities have a low turnover or are run by 1 or 2 persons. Need not keep a record of transactions as the transactions are limited. Yet, as the business grows. The entity has to…