Many business owners look at their profit and loss statement and determine if they’re profitable or not. How is revenue tracking against last month or last year? Any changes in gross or net profit margin? If I’m making money then everything must be ok. There is some validity to that way of thinking.
When you first start your business and begin recording business transactions, you must decide whether to use cash basis or accrual basis accounting. The big difference is in how you record your cash transactions. Many people use cash basis accounting for taxes and accrual basis for managing the business. Here are 5 things you must…
Some people are risk takers and don’t mind going in to debt and some are totally debt averse. They don’t borrow at all.
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