Don't spend time beating on a wall, hoping to transform it into a door." - Coco Chanel Easy way to Figure out Market ValueAs an entrepreneur, you may decide to invest into public companies and it's important to know how you would determine their market value. You can calculate a public company's market value y looking at it's share price. For example, let's assume that a company your interested in purchasing has 10,000 outstanding shares and selling them for $25. This means you and investors think the company is worth $250,000. Market value has been defined as what an item sells for in the marketplace and book value is the value an item is carried at in the accounting records (the books). Source: Phillips2ce_CH02
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Accounting at your FingertipsNow that you understand debits and credits - the chart above describes how they are used in your general ledger accounts. This is your daily cheat sheet at your fingertips. A comfort zone is a beautiful place, but nothing ever grows there" - Unknown Let's talk Budget and View an ExampleHave you incorporated a budget as a key financial tool for your small business?
Budgeting is detailed planning for the allocation of funds in a business. It is sometimes referred to as the financial picture of the business; i.e, how the business plans to spend its financial resources. Whether your business plan is for next year, for the next three years, or for the next five years, budgeting can help you keep on the right road. Deciding to expand your business whether it be by offering a new products or services, a budget is necessary. Because operating a small business is not a cut-and-dried affair, the first budget you prepare often uncovers problems with your business plan and helps you determine whether or not your financial goals are within reach. The budget will also help you focus and select from alternatives to help make your business plan realistic and achievable. In a small business, the year end profit should be large enough to make a return on your investment and return on your own work, i.e., pay you a salary. They key word here is, should! Small Business Notes provides a budget example for you to review.
Start each day with your best foot, thoughts and attitude!" Do You Need to Strengthen your Supporting detail?Supporting documentation provides detail for and substantiates the general ledger balance being reconciled. Supporting documentation should be detailed enough so that a person with no extensive knowledge of the account can review the reconciliation and understand the nature of the balance. Examples of supporting documentation include, but are not limited to, bank or other third party statements. While the description lines for most journals have a limited number of characters, Management should give more attention to the comments and explanations being provided by the accountant for reasons of audit and future reference. Avoid high level explanations, these are the ones we tend to forget why the journal was posted when we reference back months later. Source: VanderbiltUniversity
Stop thinking that one mistake, or that one setback is a signal of the end." Source: AccountingCoach
Source: BankRate.com
The objective of Oil and Gas operations is to produce and sell oil and gas. After an oil and gas well is completed and it is determined that the well is a commercial producer, procedures are instituted to place the well on production. This entails finding a purchaser for the product; installing production facilities such as flow lines, treating equipment, oil storage tanks and gas metering equipment; and connecting the purchaser's gathering system to these facilities. Continue to join our blog to learn more about the production, allocation and revenue journals of the Oil & Gas industry. This is a great industry to build your career and accounting profession. You must expect great things of yourself before you can do them." - Unknown Source: Professional Development Institute
What is Transaction Analysis?Surviving as a small business owner can be challenging and while no two businesses are the same, the survival tips below can be applied to any business.
For example, when Fontenot & Associates Solutions proposes and sells you one of their services for improving your teams inefficiencies , they are exchanging an exclusive unique solution for your cash. This is an external transaction (an exchange you can see between a company and someone else) that needs to be recorded in Fontenot & Associates Solutions accounting system. Join our company newsletter to learn more. Relentless, repetitive self talk is what changes our self-image.” — Denis Waitley Source: RBC Royal Bank
All the adversity I’ve had in my life, all my troubles and obstacles, have strengthened me.” — Walt Disney Have You Established your Business Balance Sheet?Deciding to become an entrepreneur and establish your own hair salon not only means you have taken the step to start investing, it also means you need to understand the business activities. Typically, renovations take four to six weeks to complete and then you have to spend additional funds to buy furniture and equipment for the salon. Let's not forget that you may need to consider getting a loan from bank to add with the funds you have contributed to the start up. As a business owner, it is now time to think about accounts that are likely to appear on your balance sheet. How do you classify your assets and liabilities? Are you properly accounting for them? Below is a sample balance sheet created by Fontenot & Associates Solutions and can be customized for each customer and it's business. It's not to late to start understanding the accounting of your business. |
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AuthorMy 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. |
We Work to Provide Unique Solutions"Our team of innovative professionals use their knowledge and experience to set your business and team of professionals up for success. Our extensive accounting and operations skills are a start and key tools to company growth, building team cohesiveness, establishing clear purpose and goals, and improving process inefficiencies. Our services are key to businesses of all sizes. We handle providing the detail framework to your business so that you may focus on building your business. |
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