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.
My mission is to offer the best accounting and operations solutions and tips for entrepreneurs and small to mid-size companies worldwide seeking to close their process gaps with actual solutions.