If everything seems under control, you’re just not going fast enough. – Mario Andretti As a business owner you may start off being the sole owner whose responsible for completing task from A to Z. But as your business progresses and grows, some of the day to day accounting assignments will need to be supported by an intern or a full-time assistant. Either way, as a business owner you are giving up full control and allowing someone to step in and help you grow your business.
The accounting responsibilities are important which means educating your staff should always be a key objective for ensuring the financial statements or Excel worksheets are updated correctly. Below we provide the definition of Gross and Net and also link you up to a few examples of clarity between Gross numbers VS Net numbers in accounting. Examples which can also be used as internal self-development and education to key personnel. Gross VS Net Income: Gross: Gross income is calculated by subtracting the cost of goods sold from revenue. Net: Net income is calculated by subtracting expenses such as SG&A (selling, general and administrative expenses), interest payments and taxes from gross income. Follow the link here to educate your staff more about gross and net values. You can also visit our website and learn more about Fontenot & Associates Solutions services and how we are able to support with establishing policy and procedures in addition to training staff, which releases the stress from current staff and management.
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Source: AccountingCoach
Prior to computers and software, the bookkeeping for small businesses usually began by writing entries into journals. Journals were defined as the books of original entry. In order to reduce the amount of writing in a general journal, special journals or daybooks were introduced. The special or specialized journals consisted of a sales journal, purchases journal, cash receipts journal, and cash payments journal. Bookkeeping (and accounting) today involves the recording of a company's financial transactions. The transactions will have to be identified, approved, sorted and stored in a manner so they can be retrieved and presented in the company's financial statements and other reports. Here are a few examples of some of a company's financial transactions:
The most efficient way to outline your business objectives is by establishing detail policies and procedures because whether administrative or accounting, all roles are linked to financial consequences. Motivation is what gets you started. Habit is what keeps you going. – Jim Rohn I've read many articles about how to start your own business which is the first big step to reaching your business goals. It's a new chapter with a new headline and story about your business life success. Generally, the next step is to create your business plan, prepare for the marketing of your product or service, identify your target market and the best of all establish income goals. Now, take a moment and ask yourself - how you plan to survive the first year? One of the key topics that should be included in an action plan to surviving the first year is how the business will survive the entrepreneur challenges. Entrepreneur magazine has published an article for each of our new entrepreneurs with great tips for surviving the first year. Be sure to establish you policies and procedures as a foundation to your business - as they are a key tool. Be the best version of you as a leader, as an accountant, as a business women, as a business man and especially as an entrepreneur! The secret of success in life is for a man to be ready for his opportunity when it comes. – Benjamin Disraeli Setting up internal controls will vary for each business. Some areas of the business are more at risk of loss or fraud and require more stringent controls. It is important to go through each aspect of your business and review whether you have controls in place. Who is responsible for making your business deposits? Who is responsible for ensuring all payments received are timely updated on clients accounts? Who is responsible for ensuring business expenses stay within forecasted budget? These are the questions a company's management should have identified and documented as part of the business internal controls. Accounts receivable are an important asset of the business. Delays or failure to collect accounts can result in cash flow shortages and profit erosion. Consider the following:
Source: InternalControlsforSmallBusiness Face reality as it is, not as it was or as you wish it to be. – Jack Welch |
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