To turn a profit in your business, you need to make sure your products or services bring in more money than what you put into them. But if your business expenses are greater than your revenues, you won’t stay afloat. Learn about indirect cost and how to calculate and reduce it.
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Author:
Rachel Blakely-Gray
As Patriot's Content Manager, Rachel creates engaging and informative content aimed to help business owners understand complex accounting and payroll topics.
Tangible vs. Intangible Assets
All businesses have assets. Assets can be broken down into two categories: tangible and intangible. Understand the difference between tangible vs. intangible assets to keep your accounting books and financial statements accurate.
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What Is a Retained Earnings Statement?
When it comes to managing your business’s finances, you can never be too organized. Creating financial statements paints a picture of your company’s financial health. Financial statements help with decision making and your ability to get outside financing. One statement you could create is the retained earnings statement.
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Fixed vs. Variable Costs
Business expenses are categorized as either fixed or variable costs. You should identify your company’s fixed and variable expenses for accurate books. Learn the difference between fixed vs. variable costs to help with budgeting, pricing, and decision making.
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How to Open a Business Bank Account in 4 Steps
Sixty-eight percent of businesses have separate bank accounts for personal and business finances. Separating accounts helps companies organize accounting records, avoid overspending, and accurately file taxes. You may decide to open a general business checking or savings account, payroll account, or business tax account. Regardless of the type, you need to know how to open […]
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The 411 on Tax Shelters for Small Business
Whether you’re a business or individual, you can’t escape taxes. As a small business owner, your taxes depend on the type of business structure you have, such as sole proprietorships or partnerships. Regardless of your business entity, there are legal tax shelters for small business that can reduce your taxable income.
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Business Owner Responsibilities You Can Manage: Financial Tasks
Managing accounting is just one of your business owner responsibilities. But for many, it can be overwhelming and nerve-racking. Your first instinct might be to outsource all your accounting tasks to an accountant. However, there are many financial tasks you can, and should, manage on your own.
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Book Value vs. Market Value
As a business owner, you have many types of assets. Knowing how much your assets are worth is necessary for properly creating financial statements, obtaining outside financing, and selling your property. But, assets don’t retain the same value throughout their life cycle. You need to know the difference between book value vs. market value to […]
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What Are Adjusting Entries?
Having accurate accounting books is essential for making financial decisions, securing financing, and drafting financial statements. But sometimes, you find gaps in your records, either from making mistakes or carrying out transactions from one accounting period to another. To combat discrepancies and get your records in order, you need to create adjusting entries. What are […]
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Navigate Through Book Value Calculations to Evaluate Your Business’s Worth
To run your business, you likely rely on assets such as equipment, your building, a company car, inventory, and cash. And if you want to maintain your books, create financial statements, and determine the theoretical value of your property, you need to calculate book value. What is book value?
Read More Navigate Through Book Value Calculations to Evaluate Your Business’s Worth