Tags |
|
|
Links |
|
|
Other Added - Reading Your Financial Statements: What Every Entrepreneur Must Know
There are many large mobile carwash companies and mobile auto detailing companies in the United States of America. Many of these companies dominate large regions or large cities. A mobile carwash Company or a large mobile auto detailing company constantly needs to grow and that means it needs more people. These companies need more people to do the work, sell the services and manage the company’s many crews and outlets.What is a mobile carwash company looking for in a resume? Mobile carwash companies and mobile auto detailing companies are looking for people with
Another major complaint that most business owners have is all the reading they need to do to keep abreast of what is happening in their business area. Again time management and organization can be a tremendous help. Be sure to put your reading times in your daily schedule. Schedule a half hour in the morning to read at least one article in a magazine. While having lunch, read updates or small bulletins. Make a folder in your e-mail program and organize the articles and newsletters you wish to read and then schedule time specifically to peruse th
Knowing how to do this is an essential skill not just for entrepreneurs but for everyone. However, for the entrepreneur having this skill can mean the difference between having a thriving business that continues to thrive and winding up in bankruptcy. The annals of the bankruptcy courts are strewn with cases of entrepreneurs who entrusted their accounting to others and, not knowing how to read the financial statements of their own businesses, were surprised when they found that the business was ultimately unsustainable. The purpose of this article is to help prevent this from happening to you--and to arm you with the skills you need to structure your business to your benefit from the outset.
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and federal authorities at the end of the year. The net income or loss (revenue
If your company’s not hitting its revenue targets and underselling its competition, it’s really easy for senior managers and executives to blame the economy. The fact is though, that the economy is very robust right now, and despite high energy prices, it’s pretty clear that the economy is going to stay on a strong track. So unless your market is in a slump, the chances are that your company needs to take a hard look at sales from the perspective of its strategy, process, and people.It’s not easy to look inward, and we all have a tendency to blame external factors
Knowing how to do this is an essential skill not just for entrepreneurs but for everyone. However, for the entrepreneur having this skill can mean the difference between having a thriving business that continues to thrive and winding up in bankruptcy. The annals of the bankruptcy courts are strewn with cases of entrepreneurs who entrusted their accounting to others and, not knowing how to read the financial statements of their own businesses, were surprised when they found that the business was ultimately unsustainable. The purpose of this article is to help prevent this from happening to you--and to arm you with the skills you need to structure your business to your benefit from the outset.
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and federal authorities at the end of the year. The net income or loss (revenue
We work in an increasingly data driven business environment where your business critical data is the core of your business. It is estimated that 60% of companies that lose their data shut down within 6 months. We are all aware of the pitfalls of inadequate backups - the problem is what to do about it. What's the most effective way to backup and secure your data?Online backup or tape - what's the answer? As with a lot of things in life the answer is not straightforward and the solution probably falls somewhere in the middle. In other words a combination o
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and federal authorities at the end of the year. The net income or loss (revenue
In China, Guanxi (relationship) is a complicated field. A special feature of doing business in China will be that Guanxi (relationship) in China will have to include relationship with the government body, investors, partners and even relationship with your own staff, so when doing business in China, it is important for foreign investors to learn to coordinate with the China government, especially establishing good relationship with government bodies dealing with foreign trade and economic cooperation.Governmental procedures for foreign investors in establishing inv
Your Two Major Financial Statements
There are two major financial statements that every entrepreneur should know how to read and (ideally) prepare or have prepared in their financial software (we recommend QuickBooks):
The Income Statement
The Income Statement (also known as the P&L or Profit and Loss Statement) offers a dynamic picture of the ebb and flow of your finances. Briefly, income statement shows first: A. Your various sources of income Then subtracts from that, B. Your expenses To give you the net result: Net Profit or Loss Typically, it is the result shown on this statement that is the basis for your taxation by state and federal authorities at the end of the year. The net income or loss (revenue
Small business marketers need good listening skills.No, that’s not quite true: we need superior listening skills. We must learn to effectively listen to: Customers Co-workers Business Partners Vendors (an overlooked goldmine of information) Here’s the good news: you can develop great listening skills. Positive Listening by Warren H. Reed is a little gem of a book jammed full of great ideas and checklists to help any small business marketer become a more effective listener.P
The Balance Sheet
Offers you a snapshot of cumulative results of your financial activities. It is made up of two columns:
On the left side you have your Assets
On the right are listed your Liabilities and Owners/Shareholders Equity (or ownership in the business). The two columns must be in balance, which is why this is called a Balance Sheet.
Assets=Liabilities + Equity
It's really quite logical how the Income Statement and Balance Sheet relate to one another.
If you have to use current or long-term assets to pay ongoing expenses during the current year, at the end of the year, the amount of your assets will be reduced by the amount of net loss. On the right hand side, your Equity has gone down too. If you borrowed, say $10,000 to pay current operating expenses, at year end, your assets remain the same, but your liabilities have increased by $10,000, lowering your net Equity or ownership in the company by that same $10,000.
It doesn't take a rocket scientist to figure out that if you continue on this path, you will quickly be in a very painful situation, because Liabilities carry their own cost. The cost of borrowing money is Interest, and if you are fortunate enough to borrow at only 10% interest (on unsecured debt) today, a year from now, you will have to pay $11,000 to pay off the original $10,000 debt. This reduces your equity s
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.otheradded.com/article/42728/otheradded-Reading-Your-Financial-Statements-What-Every-Entrepreneur-Must-Know.html">Reading Your Financial Statements: What Every Entrepreneur Must Know</a>
BB link (for phorums):
[url=http://www.otheradded.com/article/42728/otheradded-Reading-Your-Financial-Statements-What-Every-Entrepreneur-Must-Know.html]Reading Your Financial Statements: What Every Entrepreneur Must Know[/url]
Related Articles:
Ethical Leadership: Group Dynamics and Values - Nu Leadership Series
It's The Sales Process That Sells, Not the Salesperson
Bookmark it:
|